NVDA Stock NVIDIA Technical Chart Analysis - Are we in a RECESSION? Martyn Lucas Investor

Summary

The video script offers a comprehensive technical analysis of Nvidia Corporation's stock performance, focusing on daily charts, RSI, and MACD indicators. It discusses potential buy and sell levels, including a possible drop to $70 or $30, and an optimistic target of $230. The script also considers upcoming earnings reports and geopolitical factors that could impact Nvidia's stock price, providing insights for investors on trading strategies and risk management.

Takeaways

• 📉 Nvidia's stock has recently experienced a significant selloff, dropping from $140 to a low point, resulting in a 28% decrease.
• 📈 The first buy level mentioned is $100, where the stock had a strong bounce, making a 20% return on trade.
• 📅 Nvidia's earnings are due in 24 days, which is a key event that could influence the stock's direction.
• 🔍 The video discusses the possibility of Nvidia's price pattern repeating its past performance, with a potential rise to $230 following a similar structure to previous highs and lows.
• 💡 Technical indicators like RSI and MACD are used to analyze the stock's momentum, with the RSI currently at 40 indicating some oversold conditions.
• 🛑 The speaker suggests setting buy orders between $95 and $97 for a potential secondary bounce.
• 🚫 The MACD indicator is currently bearish, suggesting caution before entering the stock, but it's turning upwards which might indicate a bottoming out structure.
• 📊 Bollinger Bands suggest a lower level of $71 and an upper level of $140, which could be potential buy and sell zones.
• 💥 In the worst-case scenario, geopolitical issues or a downturn in the S&P 500 could affect Nvidia negatively, with a potential drop to $70 or even $30-$37 in extreme cases.
• 📈 Fundamental analysis highlights Nvidia's strong growth prospects in AI, machine learning, data centers, gaming, automotive, and professional visualization.
• 🏁 Key competitors include AMD, Intel, Google, Microsoft, and Amazon Web Services, indicating a competitive landscape for Nvidia.

Q & A

What is the current technical analysis focus on Nvidia Corporation?

The technical analysis is focusing on various chart patterns, RSI, MACD, buy levels, and sell levels to determine if Nvidia's stock price has more room to drop or if it will continue to rise towards the $200 mark and beyond.

What is the significance of the daily time frame in the chart analysis for Nvidia?

The daily time frame indicates that each candle on the chart represents one day of trading activity, providing a detailed view of short-term price movements and trends.

How much has Nvidia's stock price dropped recently, and what could be the implications for investors?

Nvidia's stock price has dropped 28% from its highs of $140, which could imply losses for investors who bought on margin or are getting liquidated, especially given the hype around the stock.

What is the importance of Nvidia's upcoming earnings report in 24 days?

The upcoming earnings report is a key factor that will influence Nvidia's stock price direction, as it may reveal how its customers are profiting from its AI chips and could bolster investor confidence.

What was the first buy level mentioned for Nvidia, and what happened when the stock reached that level?

The first buy level mentioned was $100, and when the stock reached that level, it experienced an impressive bounce, resulting in a 20% gain for traders.

What is the potential best-case scenario for Nvidia's stock price according to the chart pattern analysis?

The best-case scenario, based on the chart pattern analysis, suggests that after a potential drop to $93, Nvidia's stock price could experience a massive run, possibly reaching $230.

What factors could cause the S&P 500 to decline and impact Nvidia's stock price?

Factors such as geopolitical issues worsening or a general downturn in the broader markets could cause the S&P 500 to decline, which may negatively affect Nvidia's stock price.

What is the strategy for trading Nvidia's stock if it continues to sell off?

The strategy involves setting limit orders between $95 and $97 for a secondary bounce, with a long position at $95, a stop loss at around $93, and taking profits at $114 if the trend continues on the downside.

What are the potential buy levels if the stock price drops significantly?

If the stock price drops significantly, the potential buy levels are between $70 and $75, and as a last resort, between $30 and $37 in the event of a recession or similar extreme market conditions.

How does the RSI indicator currently stand for Nvidia, and what does it suggest about the stock's momentum?

The RSI currently stands at 40, which is not an extremely bearish signal but indicates that the stock is not in an overbought condition and that the bears are currently in control according to the RSI.

What are the key growth prospects for Nvidia, and how do they influence the stock's potential upside?

Key growth prospects for Nvidia include AI and machine learning, data centers, gaming industry, automotive sector, professional visualization, and expansion into new markets, which all contribute to the company's potential for revenue growth and profitability, influencing the stock's upside.