NVDA Stock - NVIDIA Still Super Bullish?

Summary

In this Nvidia daily update video, the host discusses the current performance of Nvidia's stock, examining its recent gains and potential future movements. The analysis covers key levels, including resistance at 174 and 176, with the possibility of further gains toward 179 and 180. The video also highlights the stock's resilience, supported by the 9 exponential moving average, and discusses possible downside scenarios, like a retracement to the 160s. Despite minor bearish signals, the host maintains a bullish outlook, emphasizing the dominance of the bulls in the market and their continued control over Nvidia's price action.

Takeaways

• 😀 Nvidia stock is showing strong performance, closing at $173 despite some underperformance relative to the market.
• 😀 Key resistance for Nvidia is around the 1.272 Fibonacci extension, with targets at $174, $176, and $179 to $180.
• 😀 The 9 Exponential Moving Average (EMA) has been crucial in maintaining upward momentum for Nvidia’s stock.
• 😀 If Nvidia falls below $170, it could signal a potential retracement to the 9 EMA or further to the 21 EMA, around the $160s.
• 😀 There’s strong bullish sentiment in the stock, with no major signs indicating an imminent correction.
• 😀 A potential minor pullback or correction could occur, but the stock is still highly bullish overall.
• 😀 Even if Nvidia experiences a pullback, it is unlikely to drop drastically in the short term—around 13% to retest support levels in the $150s is possible but seems unlikely.
• 😀 Nvidia is currently maintaining its bullish trend, and any significant bearish reversal would require a major shift in market conditions, such as disappointing earnings.
• 😀 The stock is showing potential for further gains with small bull flags setting up, indicating additional upside potential.
• 😀 The options flow is overwhelmingly bullish, with large call options being placed for next month at strikes of $175 and $180, signaling strong market confidence in the stock.

Q & A

What is the current market performance of Nvidia according to the transcript?

Nvidia is closing about 1% in the green, ending at approximately 173, which is considered decent compared to the market. Although there is some slight underperformance relative to the market, the stock is still holding strong.

What is the key resistance level for Nvidia, and what happens if it breaks through?

The key resistance level for Nvidia is around 174. If it breaks through this level, the next target is 176, followed by 179, and potentially reaching up to 180.

What happens if Nvidia stock falls below the 170 level?

If Nvidia stock falls below 170/169, it would signal a potential retracement down to the 9 exponential moving average (EMA). If the stock stays between 170 and 174, the 9 EMA will catch up to the price, offering support.

What is the significance of the 9 exponential moving average (EMA) for Nvidia?

The 9 EMA is a critical indicator for Nvidia’s stock movement. Since the stock has been consistently staying above it after a bullish crossover, a drop below the 9 EMA would indicate a potential shift in momentum and a possible correction.

What are the potential levels of support for Nvidia if the stock corrects?

If Nvidia experiences a correction, the 21 EMA is a key support level, currently around 160. This could gradually move higher if the stock stays in consolidation for a longer period.

What are the upside targets for Nvidia in case it keeps moving up?

If Nvidia continues its upward movement, the targets are 174, 176, and 179, with the potential to reach 180. These are the levels to watch for further bullish movement.

What are the potential risks for Nvidia stock in the short term?

The main short-term risk for Nvidia is a deeper correction. If the stock drops back within its channel, there could be a move to the lower end of the channel, potentially bringing the stock back to the mid-to-low 150s. However, this scenario seems unlikely unless triggered by an unexpected negative catalyst.

What role does Nvidia’s earnings play in its potential stock correction?

Earnings are seen as a key factor that could trigger a deeper correction for Nvidia. If earnings are not as expected or underperform, it could lead to a significant pullback in the stock price.

What type of chart pattern is forming on Nvidia’s stock, according to the analysis?

A small bull flag is forming on Nvidia’s 1-hour chart, indicating the possibility of a further upward movement. This pattern, if it breaks out, could bring the stock closer to the 176-177 range.

What is the sentiment surrounding Nvidia's stock, based on the options flow?

The sentiment surrounding Nvidia’s stock is overwhelmingly bullish, with a lot of call options being purchased. Despite a small dip in the stock price, the overall options flow suggests that the bulls remain in control.