NVDA Stock - Has NVIDIA Broken Out Finally?

Summary

In this Nvidia daily update, the analyst reviews Nvidia's recent price action and provides insights into its current market behavior. The stock is in a consolidation phase between $140-145, with mixed technical signals and potential divergences on the RSI and MACD. Despite some buyer exhaustion, the overall trend remains bullish, and the analyst suggests waiting for a pullback to the low to mid-130s for better buying opportunities. With the upcoming FOMC meeting, volatility is expected, and the market may experience some uncertainty. The key advice is to avoid shorting the stock, as it remains in an uptrend, but to buy on dips.

Takeaways

• 😀 The video discusses the current performance of Nvidia, with a focus on recent price movements and technical analysis.
• 😀 The speaker emphasizes that the video is not financial advice, and they are not a financial advisor.
• 😀 Nvidia has been trading within a range of $140 to $145 for about two weeks, showing signs of stagnation.
• 😀 The speaker mentions their target price for Nvidia is around $147, but notes the stock's movement is slow and uncertain.
• 😀 The 1-hour time frame suggests the bulls need to avoid significant gap downs below $144–145 for a bullish continuation.
• 😀 A close below $144 on the 1-hour time frame would be a red flag for the bulls, potentially signaling a bearish shift.
• 😀 The daily chart indicates some divergence in technical indicators like the MACD and RSI, causing some hesitation about the strength of the bullish trend.
• 😀 While the stock is still in an overall uptrend, the speaker expresses concern about buyer exhaustion and the possibility of a distribution zone forming.
• 😀 The speaker is not actively trading Nvidia at the moment but would be a buyer if the stock pulls back to the low to mid-130s.
• 😀 The video highlights the importance of watching key levels like $142 and the 8-exponential moving average for signs of a potential pullback or breakout.
• 😀 The speaker also mentions FOMC events and potential market reactions, which could influence Nvidia's price movement in the short term.

Q & A

What was Nvidia's performance in today's market update?

Nvidia saw a modest rise of nearly 2%, closing at $144.69, while the overall market moved up by about 1.4%.

What was the main target for Nvidia's price according to the analysis?

The main target for Nvidia, as mentioned in the video, was $147, which was reached very closely today.

What happened on Friday that raised concerns about Nvidia's performance?

On Friday, Nvidia closed near $142, which was close to a critical level ($142), raising concerns about the potential loss of momentum.

What is crucial for the bulls to maintain their position in Nvidia's stock?

The bulls need to avoid a significant drop below the $144 to $145 range on the 1-hour chart. This area must hold as support to maintain a bullish stance.

What would a close below $144 to $145 indicate for Nvidia?

A close below the $144 to $145 level would be a red flag, potentially signaling a bearish shift and making the bulls question the sustainability of the uptrend.

How does the daily chart compare to the 1-hour chart in terms of Nvidia's performance?

The daily chart suggests that Nvidia is inching upwards but shows signs of divergence in the MACD and RSI. Meanwhile, the 1-hour chart highlights the crucial $144 to $145 support level, which is vital for maintaining the bullish momentum.

What concerns are raised due to divergences in technical indicators like MACD and RSI?

The divergences in the MACD and RSI suggest that despite the stock's upward movement, there might be weakening momentum and potential buyer exhaustion, which raises concerns about how much further the price can go.

What is the current stance on Nvidia's stock as mentioned in the video?

While the stock is in an overall uptrend, the speaker is not currently buying it due to the lack of significant pullbacks. The speaker would become more interested in buying if the price drops into the mid-to-low $130s.

What would it take for the speaker to consider Nvidia a buy again?

The speaker would consider Nvidia a buy again if the stock experiences a pullback into the low-to-mid $130s, as this would present a better entry point.

How does the upcoming FOMC meeting factor into the market outlook for Nvidia?

The FOMC meeting, scheduled for Wednesday, could lead to market volatility, with the possibility of a minor sell-off. This could create buying opportunities, depending on how Nvidia reacts.