NVDA Stock - Can NVIDIA See $165 Next Week?

Summary

In this Nvidia daily update, the host discusses the stock’s recent performance, analyzing its bullish potential and key technical levels. Nvidia closed at $159.24, with a target of $165 possible in the coming week. The analysis highlights important support at $157 and potential risks if the stock fails to maintain this level. A breakdown could lead to a bearish scenario, but overall, Nvidia remains bullish, with strong indicators like the stochastic and MACD still pointing upwards. The video also touches on options flow, suggesting further upside potential. The key takeaway: watch for crucial levels to determine the next move.

Takeaways

• 😀 Nvidia closed the day at $159.24, which is a crucial level for the stock's performance.
• 😀 There are two possible bullish scenarios for Nvidia's future: a consolidation breakout or a direct move upwards.
• 😀 A breakout above the $159 level could lead to a potential target of $165, possibly as early as next week.
• 😀 While the breakout was a bit premature, the $165 target remains realistic, representing a 4% increase.
• 😀 Key support levels to watch include $157, which could help determine the continuation of the bullish trend.
• 😀 If Nvidia fails to hold the $157 range, there could be a risk of a false breakout, which would turn bearish.
• 😀 A potential head-and-shoulders pattern could emerge if Nvidia loses support at $157, signaling a bearish move.
• 😀 On the weekly chart, Nvidia is still bullish as long as the stock remains above the $142-$140 range.
• 😀 A close below the $140-$142 range on the weekly chart could indicate a deeper correction, potentially pushing the stock to the $120s.
• 😀 Despite minor concerns about the current daily candle, overall technical indicators like stochastic, MACD, and moving averages remain bullish.
• 😀 Nvidia's options flow is showing bullish sentiment, with calls targeting prices above $157, indicating a move toward the $160s next week.

Q & A

What is the main focus of the video?

The main focus of the video is to provide an analysis of Nvidia's stock performance, including its current position in the market, possible future movements, and an overview of key technical indicators.

What is the significance of the 159 level in Nvidia's stock?

The 159 level is a critical resistance level for Nvidia's stock. The video discusses how breaking above this level is significant for a potential bullish continuation.

Why does the analyst mention a possible bull flag pattern?

The analyst discusses a potential bull flag pattern as part of the stock's upward trend. A bull flag typically forms after a price rise, consolidates, and then breaks out to the upside, which the analyst sees as a possibility.

What is the risk associated with Nvidia's stock movement?

The risk discussed is the possibility of a 'bull trap,' where the stock may show a false breakout, leading to a reversal. If Nvidia loses the critical support levels around 156 to 157, this could indicate a bearish turn.

What factors make the 165 target for Nvidia realistic?

The 165 target is considered realistic because it represents a 4% move from the current level and aligns with the upper resistance area for Nvidia, suggesting it could be reached within the next week.

What happens if Nvidia fails to hold the 157 level?

If Nvidia fails to hold the 157 level, it could signal a reversal, with the possibility of a deeper correction. In the worst case, this could form a bearish head and shoulders pattern, signaling further declines.

What are the key levels to watch for potential reversal or continuation?

The key levels to watch are 159 for resistance, and 157 for support. A drop below 157 could signal a reversal, while holding above this level keeps the bullish scenario intact.

What does the analyst think about Nvidia's longer-term prospects?

The analyst remains overall bullish on Nvidia, despite some short-term concerns. The weekly chart still shows an upward trend, as long as the stock stays above the 140 to 142 range.

What is the significance of volume in Nvidia's price movements?

Volume is important because it helps confirm the validity of price movements. A breakout accompanied by good volume, as seen with Nvidia recently, is considered a positive sign, though the analyst notes the volume could have been higher.

How do the technical indicators like MACD and stochastic support the bullish outlook?

The MACD, stochastic, and other indicators are still showing bullish signals, suggesting that the stock is in an uptrend. Even though the daily candle formation is not ideal, these indicators support the idea of further upward movement.