NVDA Stock - NVIDIA Crazy Bullish! But Watch For This

Summary

In this Nvidia stock update, the speaker shares insights into recent market movements, highlighting a 4% gain following news that Nvidia can sell GPUs to China. The stock has shown impressive strength, holding above key support levels, with potential for further growth if it maintains its upward momentum. The speaker uses technical analysis to explore price targets and emphasizes the importance of holding above certain levels to sustain bullish trends. Caution is noted due to overextension from the 9 exponential moving average, but overall, the outlook remains positive as long as key support holds.

Takeaways

• 😀 Nvidia stock is experiencing impressive strength, holding well above the 9 exponential moving average (EMA) for months, showing remarkable resilience for a stock of its size.
• 😀 A gap up in Nvidia's stock occurred recently, pushing it above a rising channel, turning it into potential support, which is a bullish sign.
• 😀 The stock's short-term trend is uncertain, with the next 2-3 days crucial in determining whether the trend will continue or correct.
• 😀 Fibonacci extension targets for Nvidia stock suggest a potential rise to 175 and possibly up to 180 if the bullish trend persists and it holds above 169.
• 😀 If Nvidia loses the 169 support level, there is an expectation that the stock will revert to the 9 EMA, which is currently sitting around the 163 level on the daily chart.
• 😀 The stock market's macroeconomic events, like PPI and jobless claims, will play a role in Nvidia’s short-term performance, and a cautious approach is recommended given the current momentum.
• 😀 Even with the bullish chart, the distance from the 9 EMA on the weekly chart is significant, suggesting potential for a sideways correction before continued upward movement.
• 😀 Despite its strong performance, the stock feels like it is experiencing a FOMO (fear of missing out) rally, which makes it a less appealing trade for some investors.
• 😀 The speaker prefers trading setups like AMD, Apple, and Google, which show more controlled and predictable movements, rather than chasing momentum stocks like Nvidia at these elevated levels.
• 😀 The options flow shows that while bulls are dominating, bears are starting to step in, indicating that market sentiment might be shifting, and caution is needed for any sudden reversals.

Q & A

What is the main focus of the video?

The main focus of the video is on an update about Nvidia stock, including its recent performance, technical analysis, and what to expect in the coming days.

What did the creator share about Nvidia's recent stock performance?

The creator highlights a 4% increase in Nvidia's stock price after a positive news development that allowed Nvidia to sell GPUs to China. The stock has been very strong, continuing to hold above key moving averages for an extended period.

What is the significance of the rising channel mentioned in the video?

The rising channel refers to a pattern in the stock's price movement. Nvidia's stock recently gapped above this channel, which is seen as a bullish signal. If the stock continues to hold above this rising trend line, it could indicate further gains.

Why does the creator emphasize the importance of holding above 169?

The creator views the level of 169 as a critical point for Nvidia's stock. If the stock price stays above 169, there’s potential for further bullish movement, but if it falls below this level, the stock may experience a correction towards its 9 exponential moving average (EMA).

What does the creator think of the 'hanging man' candles mentioned in the video?

The creator explains that while 'hanging man' candles are generally considered reversal indicators, in their experience, they are often unreliable for predicting market reversals. The creator uses this as an example of a less trustworthy candlestick pattern.

How does the creator feel about Nvidia's current chart setup?

While the creator acknowledges that Nvidia's chart looks bullish, especially above the 169 level, they express concerns about the stock's current overextended position and feel it may be driven by FOMO (fear of missing out).

What other stocks does the creator compare Nvidia to in the video?

The creator compares Nvidia to stocks like AMD, Apple, Google, and Starbucks, which they believe present better trade setups based on their technical analysis and patterns.

What is the creator's view on the options flow for Nvidia?

The creator notes that although bulls are still dominating in the options market, there has been an increase in bearish activity towards the end of the day. However, the overall trend is still seen as bullish, with bears stepping in cautiously.

What role do upcoming economic events like PPI and CPI play in the creator's analysis?

The creator mentions that upcoming economic events like the Producer Price Index (PPI) and Consumer Price Index (CPI) reports, along with jobless claims, could influence Nvidia's stock performance. These events will provide more information on market sentiment and could impact Nvidia's price movement.

What is the creator's overall outlook for Nvidia in the near term?

The creator's outlook for Nvidia remains bullish as long as the stock holds above the 169 level. If it falls below that, a short-term correction to the 9 exponential moving average is expected. The creator also notes that while the weekly chart looks very bullish, the stock is quite overextended.