I was pointed to this inverted head and shoulders last night and it's almost too perfect. You can look at the structure and the neckline (slightly declining) and it's perfect.
Well, we just kinda broke out yesterday. Chances are you can get a better entry from here if this is what you want to play. It may (and probably will) chop back under this important trendline. Your stop loss really is around $143 but the target is going to be around $336. Good upside potential if you can wait a while.
This formation has been in the making since April 2022. 9 months of chop and now we might get that move up.
The wave master pro indicator is currently showing signs of exhaustion so you may want to wait for some pullback to get a good entry. Will need patience on this one.
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From a purely technical standpoint, it does look like we've broken up out of this chart formation.
Again, purely technical. I think NVDA has a fair value between $30 and $50 but for now, it looks bullish - the risk is defined if anybody decided to get common stock on this.
Trade active
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You all laughed, but look at her now
Trade closed: target reached
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Patience was necessary but here we are for those of you that were following.
@orimichaeli yeah you could be right! Risk is pretty clearly defined here either way.
orimichaeli
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@bitdoctor Well i do not think we are going to see "To the moon" and ATH for the next two years and not only for NVDA. historically, stocks market never went up with rising interest rates and high inflation.
heavy_assault
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@orimichaeli, has nothing to do with interest rates or inflation. nvda is the most overhyped most overpriced bubble in the history of the stock market. this company has been priced to build time machines, build warp drives, build cold fusion reactors, reverse aging, cure all cancer, cure all disease, lead mankind to ascension among the gods.
this stock is being constantly manipulated up. the stock market manipulators are completely infatuated with nvda's AI chips. fair price at most $50-60, biggest bubble in the history of the stock market.
bitdoctor
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@orimichaeli I completely agree with you there and I'm not a moon person. This is simply a pattern trade that has a target up there. I'm not bullish on most things in the NYSE right now.
bitdoctor
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@orimichaeli, We made it to all time high. What a ride! Patience was necessary but here we are for those of you that were following.
orimichaeli
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I bought on 300 to hedge my short position. This is crazy bull run.
heavy_assault
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Do you have any idea how big the nvda bubble is?
If you combine tulips, btc, tesla @ ATH, all the dotcom stocks, all of sydney's and china's real estate (the most overpriced real estates in the world), you still can't get to 0.000001% of the nvda bubble.
This is by FAR the most overhyped most overpriced company in the history of the stock market, at $150. So at ATH, the bubble cannot be described with human language.
But, if you're making this post simply based on charts and you care 0 about fundamentals, that's fine. I'm talking about nvda from a strictly fundamental perspective. Yes chart says it's going to mid 200s at least, it's an inverse H&S on the weekly like many posters have mentioned already
bitdoctor
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@heavy_assault I appreciate you taking the time to respond. You seem to be a pretty big bear on nvda. Zooming out and looking at the chart (you are right I don't care about fundamentals. I'm a technical trader, not a fundamental guy. Frankly I don't have time diving into fundamentals of all the companies I trade.), it looks like the fair price is probably closer to $30.
If I may ask, because I'm genuinely curious, what's your investment strategy here? You seem passionate about your thoughts so you must be invested somehow.
heavy_assault
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@bitdoctor, I'm obviously not invested in nvda. The share price is being pumped up by market manipulators who are 110% infatuated with nvda's AI chips, they think only nvda is capable of advancing AI and they think nvda will have eternal dominance in the deep learning accelerator industry. Even with eternal dominance, nvda is still the biggest bubble of all time. Look at nvda's peers amd intel qualcomm etc, especially amd, their share price are doing very poorly and their valuation are MUCH lower, while nvda rockets to the moon every day even on red nasdaq days.
As to investment, I only have a small holding in stocks, all low p/e value stocks that like high inflation/yields. Almost all my money goes into my mortgage, the rates are too high and mortgage is a far better place to put my money than this overpriced market. So no, no investment strategy right now because market is WAY overpriced, but if you have no debt and plenty of spare cash, probably emerging market ETF or defensive REITs with solid dividend (REITs with high CPI escalators to protect against inflation).
Good luck.