Hi friends! Welcome to this update analysis on Nvidia! Let's get right to it!
Looking at the daily chart for NVDA, we can see that the stock price fell to the blue uptrend support. You may not be able to tell, but today's candle actually pierced the rising blue trendline. On November 20th, price gaped down below it in pre-market trading, but was able to recover above it during the session. So, the rising blue trendline has technically been violated twice in the past 30 days, which weakens the trendline as support. Furthermore, the US equity markets are becoming increasingly bearish. So, I think there is a high probability that NVDA will break down below this rising blue trendline support.
As I covered in the last NVDA analysis, "you can see that price put in a small hump (next to the first blue arrow) then it produced a gap down. From there, price fell, produced another hump (second blue arrow) and then a major gap down followed. Now, NVDA has printed yet another hump, just above the critical rising support line." So, it is possible that we could see a gap down, which would fulfill a continuation of the pattern.
A breakdown below the rising blue trendline will put the first target at 119.60. Below there, we would be looking for a gap fill around $102 and change.
Happy Holidays Everyone, and good luck trading!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Repeating the good words of Linus Torlvalds: "NVidia - F*ck U!"
Omhhh
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Is this trade active! any chance of an update here :)
bbanno2
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@OmarHalawi, daily closed below the trendline support. I'm expecting a $20 gap down as Magic predicts.
ClaymorePT
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Just a normal correction due to all of the speculation regarding the bitcoin mining with NVidia GPUs.
This is the result of another bubble created by the Bitcoin hype.
bbanno2
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@ClaymorePT, 50-60% decline in a quarter is far from correction territory and definitely not "normal". This is a bearish trend mate. When looking at the bottom support trendlines, all going back to 2017 are broken to the downside.
Bubbles are caused by "investors", not the asset itself.
- Was NVDA's rise related to Bitcoin's price increase? Absolutely. Was that Bitcoin's fault? Absolutely not.
- Was NVDA's rise also related to all major indexes reaching ATH's? Absolutely. Was that the indexes' faults? Absolutely not.
- Was NVDA's loss of competitive advantage in the graphics cards and crypto mining space related to the 50-60% crash? Yes. Who's fault is that? NVDA.
bbanno2
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@ClaymorePT, 50-60% decline in a quarter is far from correction territory and definitely not "normal". This is a bearish trend mate. When looking at the bottom support trendlines, all going back to 2017 are broken to the downside.
Bubbles are caused by "investors", not the asset itself.
- Was NVDA's rise related to Bitcoin's price increase? Absolutely. Was that Bitcoin's fault? Absolutely not.
- Was NVDA's rise also related to all major indexes reaching ATH's? Absolutely. Was that the indexes' faults? Absolutely not.
- Was NVDA's loss of competitive advantage in the graphics cards and crypto mining space related to the 50-60% crash? Yes. Who's fault is that? NVDA.
ClaymorePT
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@bbanno2, I have to agree with you in all aspects, except on the competitive advantage in the graphics cards and crypto mining space.
NVDA's stocks rise started long after the death of GPUs being used to mine bitcoin. Antminers and similar rigs have been being used to mine bitcoin for the better part of the last three years.
So,is the crash due to that? No... it's just the pop of a bubble and stupid investors who did not made their homework. Long are the days where the main NVDA's market was the gaming market. They have grown well beyond that. From DataCenters dedicated GPGPUs, to Autonomous Mobile dedicated hardware, to Artificial Intelligence dedicated hardware... take your pick.