NVDA Stock - Whats Next For NVIDIA?

Summary

In this Nvidia daily update, the speaker provides a technical analysis of Nvidia's stock, highlighting concerns about market weakness and its potential impact on the stock. Nvidia’s recent price action, with a bearish divergence in key indicators like MACD and RSI, raises doubts about further upside. Support levels are identified around $142, with potential downside targets at $136-$137 and as low as $120-$123. Despite this cautious outlook, the speaker suggests that a dip into the $120s could present a good buying opportunity. The broader market’s volatility, particularly geopolitical tensions, is also considered in the analysis.

Takeaways

• 😀 Nvidia is down 2% today, closing just shy of $142, with a volatile market affecting its price action.
• 😀 Nvidia tends to follow the broader market (SPY), unlike Tesla, which can behave independently of the market.
• 😀 SPY shows weakness, having closed below key levels and creating a potential bearish outlook for the broader market.
• 😀 Nvidia's price action has been choppy, with a recent bull trap followed by a bear trap, indicating market uncertainty.
• 😀 Key support levels for Nvidia are around $142, with the 21 EMA providing potential support at $136-137.
• 😀 Nvidia is showing a bearish divergence on both the MACD and RSI, signaling weakening momentum despite price holding steady.
• 😀 The stock has been grinding upward slowly but is taking its time, which might indicate a topping phase rather than further growth.
• 😀 Nvidia’s potential downside targets are $130 and $120-123, with the latter being a more aggressive, greedy target.
• 😀 A pullback in Nvidia into the $120-130 range would be seen as an attractive buying opportunity for long-term investors.
• 😀 The weekly MACD and stochastic indicators remain bullish, suggesting that a pullback could lead to a solid buying setup if the market stabilizes.

Q & A

What is the general market sentiment for Nvidia as discussed in the video?

The market sentiment for Nvidia appears cautious. The video suggests that Nvidia has been showing bearish signals, including a possible 'bear trap' and a large bearish divergence on technical indicators like the MACD and RSI. The stock is also closely following the broader market, which shows signs of vulnerability.

What technical indicators are causing concern for Nvidia's stock price?

The video highlights several technical indicators of concern: a bearish divergence on both the MACD and RSI, as well as Nvidia closing below important trend lines and the 8 exponential moving average. These signals suggest that the stock may be topping or encountering resistance.

What are the potential downside targets for Nvidia stock mentioned in the video?

The video suggests that Nvidia could potentially decline to the 21 exponential moving average, around $136 to $137, with a more conservative target at $130. The more 'greedy' target for downside movement is between $120 to $123.

How does the broader market (SPY) influence Nvidia's price movement?

Nvidia is noted to follow the broader market, specifically the SPY ETF. The video mentions that SPY is showing signs of weakness, such as closing below key moving averages and exhibiting a rising wedge pattern, which could potentially drag Nvidia down with it if the market continues to decline.

What recent technical setup on Nvidia's chart led to the warning of a possible bull trap?

The video mentions that Nvidia faced rejection at the $145 level multiple times and closed just below the 142 support area. This setup created a potential bull trap, where the price initially spiked before falling back, leading to confusion and a cautionary stance for both bulls and bears.

What is the significance of the weekly technical indicators mentioned for Nvidia?

The weekly indicators for Nvidia show a bullish flip on the MACD and a strong position on the stochastic indicator, which is above 60. These suggest that if the stock experiences a pullback, it may present a strong buying opportunity, with the potential for further upward movement.

What is the broader economic or geopolitical situation affecting the market's volatility?

The video references the ongoing conflict between Iran and Israel as a geopolitical factor that could be contributing to market volatility. This uncertainty may be reflected in the choppy and uncertain price action observed in Nvidia and the broader market.

What membership options are available for those interested in the creator's market analysis?

The video offers multiple membership tiers for market analysis. The lowest tier costs $3 a month for Tesla-related analysis. The next tier at $5 includes both Tesla and Nvidia analysis. The $7 tier includes additional non-Tesla and non-Nvidia stock analysis, along with Discord chart requests.

Why does the speaker believe Nvidia may be 'topping' soon?

The speaker feels Nvidia may be topping because the stock has been grinding higher without significant momentum, showing signs of a bearish divergence. Additionally, the speaker believes there's little upside left in the stock and doesn't think there's much more to be gained from holding it at current levels.

What is the key level to watch for Nvidia in the coming days?

The key level to watch for Nvidia is around the $142 support zone. A break below this could suggest further weakness, while a bounce at this level could lead to a more positive outlook for the stock.