Hello traders and investors! Let’s see how NVDA is doing today!
Technically speaking, the purple line at $ 224 is a key point for us, and if NVDA defeats this price level, it’ll turn bullish, at least for a short period of time, and we’ll seek the ATH.
Keep in mind that NVDA is in a congestion, moving sideways, and not doing anything meaningful. However, since we are near a support level, at the bottom of this congestion, the risk/reward ratio starts to get interesting again.
Let’s see the daily chart for more clues:
Yes, NVDA is quite close to another support, the 21 ema in the daily chart. As far as I know, NVDA is doing what I like to call a “Time Correction”. This happens when the stock goes up a lot, and it needs to rest a little. But since we are talking about such a good company, the price simply can’t drop – but it can’t go higher anymore. Then we see a sideways movement, while the 21 ema gets closer to the price: A Time Correction.
A Price Correction occurs when the price actually drops to the previous supports, like the 21 ema or the Fibonacci’s Retracements. So far, NVDA is quite resilient, and there’s nothing indicating that the bull trend will reverse.
We could seek the retracements again, yes, but we must see a stronger bearish structure in the 1h chart for that.
If you liked this analysis, remember to follow me to keep in touch with my daily updates. And please, support this idea before you go, if you really read this far!
Thanks Nathan, I love that your charts are so concise projecting only the right kind of information needed. I am trying to learn this skill from you. Question: Do you see a flag pattern in the daily chart of NVDA?
Nathan_Black
⋅
@Paresh_Sagar, thanks a lot, Paresh! I think so. It is not the best flag ever, but the pattern is quite similar.