NVDA Stock - Whats Next For NVIDIA?

Summary

In this Nvidia daily update, the stock has seen a 15% increase, reaching $158 per share, but is approaching key resistance around $160. While Nvidia remains undeniably bullish, caution is advised as the stock nears these levels. Potential pullbacks could occur, with support expected between $149-$150, and a deeper correction could target the $145-$144 range. Options flow is mixed, with calls at $160 and puts at $148. The overall outlook is bullish, but a short-term consolidation or retracement could be on the horizon before any further upside movement.

Takeaways

• 😀 Nvidia stock has been performing well recently, with a 15% increase on the day, reaching around $158 per share.
• 😀 Despite its bullish trend, Nvidia is approaching significant resistance, especially around the $160 to $161 range.
• 😀 The stock is considered bullish overall, but caution is advised as it nears resistance levels.
• 😀 Technical indicators such as EMAs, MACD, and stochastic are all bullish, indicating continued positive momentum for Nvidia.
• 😀 If Nvidia faces resistance, the downside potential could lead to a 5% retracement, with the stock potentially dropping to around $150.
• 😀 Strong support levels are expected at around $149 to $150, as this range has seen multiple touchpoints historically.
• 😀 If Nvidia breaks through key support levels like $144, a deeper correction could occur, leading to a major reversal.
• 😀 A consolidation phase or 'premium-sucking' behavior could occur if Nvidia stays within its rising channel, leading to sideways movement for some time.
• 😀 The stock could experience a minor pullback, potentially reaching $149 before continuing its upward momentum.
• 😀 The scenario of a deeper correction to $145 or lower is unlikely to happen immediately and may not occur until later in the summer or after earnings announcements.
• 😀 Options flow on Nvidia has been mixed, with some large calls and puts, reflecting uncertainty in the market's near-term direction.

Q & A

What is the current status of Nvidia's stock?

Nvidia's stock is showing a relatively modest increase, up by about 15% on the day, with the share price hovering around $158. However, it is approaching major resistance levels, which could impact further upward momentum.

What are the potential upsides for Nvidia's stock?

Nvidia's stock could continue to rise, potentially reaching around $161 to $162. This would bring it closer to the top of its rising daily channel, though a minor rejection or a slowdown in momentum is expected as it nears these levels.

What factors suggest Nvidia’s stock is still in a bullish phase?

Despite approaching resistance, Nvidia's stock is undeniably bullish, as indicated by bullish EMAs (Exponential Moving Averages), MACD, and stochastic indicators. The overall technical picture remains positive, suggesting potential for further growth.

What downside scenarios should investors watch for?

If Nvidia's stock faces rejection, a 5% retracement is possible, which could bring the price down to around $150. The stronger support levels are expected in the $148 to $150 range, which has seen more validation historically.

What is the significance of the $149 level for Nvidia?

The $149 level is important because it represents a stronger support zone based on historical price action. The stock has touched this level multiple times before, making it a key area to watch if the price starts to decline.

What is the worst-case downside scenario for Nvidia?

In the worst-case scenario, Nvidia's stock could drop to around $145 to $144, which would likely coincide with the lower boundary of its rising daily channel. This would be a significant support level but could signal a deeper correction if broken.

What pattern does Nvidia’s stock tend to follow during consolidations?

Nvidia’s stock is known for 'sucking premium' during consolidation phases. It can often remain stagnant or experience minimal movement, which benefits options sellers as the stock eats up premium from both bulls and bears.

How does Nvidia typically behave around earnings announcements?

Nvidia often experiences a sell-off as it approaches earnings, followed by a rally into the earnings report itself. This pattern is typical and could be something to watch for in the near future.

What role does the daily rising channel play in Nvidia's stock price action?

The daily rising channel serves as a guide for understanding Nvidia's stock price movement. If the stock price stays within this channel, it is considered bullish. A break below the channel, particularly below the $144 level, would signal a deeper bearish reversal.

What are the implications of mixed options flow for Nvidia?

The mixed options flow throughout the day indicates uncertainty in the market. While there were significant bullish call options early in the day, there was also notable put activity towards the end, reflecting mixed investor sentiment and possible indecision about the stock's near-term direction.