NVDA Stock - Big Level On NVIDIA Here

Summary

In this Nvidia daily update, the speaker provides a technical analysis of Nvidia's stock performance, focusing on key price levels, trends, and potential risks. He highlights the importance of the 173 mark for the bulls, cautioning that a break below it could signal a short-term downturn. The speaker also discusses the elevated MACD and potential signs of a correction, warning of the possibility of a double top. While the stock shows bullish potential in the short-term, he advises monitoring the market closely, especially if key levels like 173 are breached.

Takeaways

• 😀 The video is an update on Nvidia's stock performance, focusing on technical analysis and potential future movements.
• 😀 The speaker emphasizes that this is not financial advice and provides a subscription service for daily updates and technical insights.
• 😀 Nvidia's stock appears to be moving slowly but steadily, with a potential bullish flag or pennant pattern forming on the 1-hour chart.
• 😀 A key price level to watch is $173. If Nvidia's stock falls below this level, it could signal trouble for the bulls in the short term.
• 😀 If Nvidia holds above $173, there is potential for further price increases, possibly reaching the high 170s or near $180.
• 😀 If the price breaks below $173, the speaker warns of potential downside risks, including a retest of lower support levels like the 9 EMA around $170–$171.
• 😀 The speaker compares the current market scenario to a game of musical chairs, advising viewers to be cautious as the market's upward momentum can't last forever.
• 😀 Despite some signs of potential downside risks, the speaker notes there are no clear signs of an imminent crash yet.
• 😀 There's a concern about the MACD, which is showing its second-highest level in Nvidia's history, possibly signaling a market correction soon.
• 😀 If Nvidia loses significant support levels like $173 and the 9 EMA, there could be a larger correction, with potential drops into the mid-$160s or lower.
• 😀 The speaker highlights a possible double top formation, which could trigger a more aggressive correction if it happens, especially if Nvidia falls below $165.
• 😀 Options flow has been relatively slow, with little noteworthy action from large players (100K or higher premiums), suggesting cautious market sentiment at the moment.

Q & A

What is the current trend in Nvidia's stock as described in the video?

The stock is moving slowly, described as moving like a 'grandpa', but still in a positive direction. The stock is currently hovering around the $173 mark.

What key level should be watched for Nvidia's stock movement?

The $173 level is critical. If Nvidia's stock falls below this level, it could signal short-term bearish conditions. Conversely, if it stays above $173, the bulls have a chance to continue pushing the stock higher.

What technical pattern is forming on the 1-hour chart?

The 1-hour chart suggests that Nvidia's stock might be forming a bullish flag or pennant pattern, indicating potential upward movement if the stock maintains its current levels.

What is the significance of the 9 Exponential Moving Average (EMA)?

The 9 EMA is seen as an important support level. If Nvidia’s stock falls below this level, it could signal a potential short-term decline, with further downside risk if it loses this level convincingly.

Why does the speaker compare Nvidia's stock behavior to a 'musical chairs' game?

The comparison is used to emphasize the unsustainable nature of the stock's continuous upward movement. At some point, the 'music' will stop, signaling a potential correction or reversal in the stock’s price.

What are the risks associated with Nvidia's current stock price?

Despite bullish potential in the short term, there are concerns due to the elevated stock price and MACD indicators showing signs of a potential reversal. There is a risk of a healthy correction, especially if key levels such as $173 are broken.

What does the MACD indicator suggest about Nvidia's stock?

The MACD is showing its second-highest value in the stock's history, with some signs of curling, but it has not yet turned bearish. This could signal a potential shift in momentum, warranting caution for investors.

What are the potential consequences if Nvidia's stock drops below $173?

If Nvidia drops below $173, it could trigger a short-term bearish move, potentially leading to a retest of lower support levels, such as $170 to $171, or even further down to the low 160s if the trend worsens.

What would signal a more significant correction in Nvidia's stock?

A drop below key support levels like $173, followed by a loss of the 9 EMA and subsequent candle closures below these levels, could trigger a larger correction. A drop to the low 150s could be a possibility in such a scenario.

How does the options flow analysis relate to Nvidia's stock?

The speaker notes that the options flow has been relatively slow, with no major movements or large transactions to indicate significant changes. They focus on high-premium orders (100k or higher) but mention that there has been little noteworthy flow for Nvidia recently.