NVDA to the Moon?

NVDA is starting to hold support and could possibly head to the level of 450. The good thing about NVDA is that their AI chips are highly sought after. Depending on their earnings performance in August, we might see NVDA really take off.

Bullish Case - Being the leader in GPUs, this market share dominance shows NVDA owning their space. With potentially strong earnings coming up and the hype around generative AI (like chatGPT), NVDA could potentially maintain a level above 400 regardless.

Bearish Case - We must acknowledge that we have already broken the uptrend and MUST test lower levels to establish support. With the golden ratio and the need to fill the gap below, there is a potential to test the 300 level before the next bounce. When it breaks 374.36, I will play to the downside to the .618 level.

Conclusion - NVDA had an epic run to the level of 440 before slowing down and is in need of proper retracement. The extent of this depends on whether it can hold above 374.36. However, playing the downside can be tricky because of its overall trend strength.

Bullish above - 406.41
Bearish below - 374.36

Comment:

Scalped via QQQ knowing this would be powering the ETF. Next setup would be the bounce off the line if it offers me the position.