NVDA Stock - NVIDIA To $160 or $148 Next?

Summary

In this Nvidia daily update, the speaker discusses the stock's current performance, focusing on key support levels and technical analysis. The stock has been showing a steady uptrend but faces potential risks if certain trendlines break. The speaker highlights important price targets, including a final target of $160, and discusses potential pullbacks or consolidation patterns. Attention is given to the SMI indicator signaling a potential slowdown in momentum, though no drastic downturn is expected. The overall outlook remains bullish, provided Nvidia stays above key support levels, with the possibility of further gains if the bullish trend continues.

Takeaways

• 😀 Nvidia had a solid day, closing up about 0.5%, finishing at 155, but it experienced some volatility with a gap-up followed by a close lower than its opening price.
• 😀 Key trendline on the 1-hour chart is crucial for Nvidia's movement. A bounce off the trendline could lead to an upward move to around 160, while losing the trendline might signal a shift in momentum.
• 😀 If Nvidia loses its key trendline, it doesn’t imply an immediate crash. Instead, it may lead to sideways action or a potential bull flag pattern before further movement.
• 😀 Major support levels to watch include 153 and 148-149, with the latter being particularly important since it marks a significant past resistance-turned-support zone.
• 😀 A warning sign for potential downside risk is the SMI indicator, which is above 60 and curling downward, suggesting limited upside momentum for Nvidia in the short term.
• 😀 The SMI indicator has historically suggested a topping out of momentum when it curls above 60, potentially indicating a consolidation phase or small pullback rather than a full crash.
• 😀 Despite the concerns, Nvidia remains in a strong bullish position on the daily chart, with the bulls still firmly in control as long as the stock stays above 142.
• 😀 If Nvidia loses the 142 support level, it could trigger a significant reversal, similar to what happened with Tesla, but as long as it holds above this level, the uptrend remains intact.
• 😀 The MACD, stochastic indicators, and exponential moving averages are all still bullish for Nvidia, though the stock might be a bit extended in the short term.
• 😀 Short-term price targets suggest a possible move to 159 before consolidation, and if the 142 level is defended, further gains are expected. However, there is a risk of a healthy pullback as well.

Q & A

What is the general sentiment towards Nvidia's stock performance in the video?

The sentiment is generally positive, as the speaker highlights that Nvidia's stock has been in an uptrend and still shows potential for further gains, provided it holds certain support levels.

What is the significance of the trendline mentioned in the analysis?

The trendline is crucial because it represents the support level for Nvidia's stock. If the stock bounces off this trendline, it is expected to rise further. If it loses this trendline, it may indicate slower growth or potential consolidation.

What is the target price for Nvidia's stock mentioned in the video?

The speaker sets a target price of around $160 for Nvidia's stock, assuming it continues to follow the current bullish trend.

What happens if Nvidia loses its current trendline support?

If Nvidia loses the trendline support, it doesn't necessarily mean the stock will crash, but it may signal a slowdown in the upward momentum. This could result in sideways action or a pullback.

What are the key support levels for Nvidia's stock?

The key support levels mentioned are at $153 and $148-$149. These levels are considered crucial for maintaining bullish momentum, with $148-$149 being the stronger support.

What bearish signals are pointed out in the video?

A potential bearish signal mentioned is when the SMI indicator goes above 60 and begins to curl downwards. This suggests the stock's upward momentum may be nearing its peak, signaling limited upside potential.

What does the speaker suggest doing when the SMI indicator curls up above 60?

The speaker suggests selling calls against shares or trimming positions when the SMI indicator curls above 60, as it often indicates limited upside and a possible topping out of the stock.

How does the daily chart affect the sentiment towards Nvidia's stock?

The daily chart shows that bulls are still in control, with higher highs and higher lows. As long as Nvidia stays above the critical support level of $142, the sentiment remains bullish.

What is the significance of the $142 support level?

The $142 level is seen as a strong bullish low. Losing this level would signal a break in the bullish structure and could indicate a larger reversal in the stock's trend.

What does the speaker predict for Nvidia's stock in the near future?

The speaker predicts a potential small pullback to the $153 to $149 support range, followed by consolidation or a continuation pattern. If the stock stays above $142, further gains are expected.