NVDA Stock - Whats Next For NVIDIA ?

Summary

In this Nvidia stock update, the presenter analyzes the current market performance of Nvidia, emphasizing a neutral stance due to its proximity to key resistance levels. Despite a 75% increase, there's cautious optimism as the stock might continue to rise or face a potential reversal. The video highlights technical indicators such as support and resistance levels, and the possibility of a bearish pivot if key levels are breached. The presenter is patient, awaiting the formation of a strong bullish pattern before making any further trading decisions.

Takeaways

• 😀 Nvidia stock has experienced a 75% gain recently, slightly outperforming the market.
• 😀 The speaker is currently neutral on Nvidia, neither bullish nor bearish, waiting for clearer market signals.
• 😀 The stock is approaching significant resistance levels, particularly around $164-167.
• 😀 Bearish reversal candlestick patterns, like the 'dragonfly doji' and 'hanging man,' have appeared, but they are not strong enough to signal a major reversal.
• 😀 While there is some downside risk, the speaker finds the current risk/reward setup not compelling enough for a short position.
• 😀 Key support levels for Nvidia are identified around $161-162, with further support at $158-159.
• 😀 Losing the $157 level could trigger a bearish pivot, but it's not yet a major red flag.
• 😀 A real concern would arise if Nvidia breaks below its exponential moving averages or key support levels, signaling a potential downtrend.
• 😀 The options flow has been slow and uneventful, with nothing significant indicating a major bullish or bearish move.
• 😀 The speaker highlights that even if a bearish pivot occurs, it could turn into a bullish pattern, similar to previous examples like AMD's behavior.
• 😀 Overall, the speaker is focused on waiting for a clear setup, such as a bullish pattern forming around support levels, before making any trading decisions.

Q & A

What is the main purpose of the video?

The video serves as an update on Nvidia's stock performance, providing technical analysis and sharing the creator's thoughts on future price movements and market sentiment regarding Nvidia.

What is the creator's stance on Nvidia's stock at the moment?

The creator is currently neutral on Nvidia, neither bullish nor bearish. They are watching for new opportunities but are cautious due to Nvidia approaching major resistance levels.

What is the significance of the 165 price target for Nvidia?

The 165 price target is seen as a key resistance level, which the creator has mentioned multiple times. Nvidia has reached this level, and the creator is questioning whether it will continue higher or potentially reverse.

Why does the creator mention the concept of risk-reward in their analysis?

The creator emphasizes the importance of assessing risk-reward scenarios in trading. At the 165 price point, they believe the downside risk outweighs the potential upside, making it a less favorable time to be bullish on Nvidia.

What bearish reversal signals did the creator identify on the charts?

The creator noticed a potential bearish reversal signal in the form of either a dragonfly doji or a hanging man candlestick pattern, though they clarified that these are not the strongest bearish reversal signals.

What is the significance of the 157 price level for Nvidia?

The 157 price level is significant because if Nvidia's price falls below this level, it could indicate a bearish pivot, potentially signaling a reversal. This level is seen as a warning sign, though it may not necessarily lead to a drastic drop.

What would be considered a major red flag for Nvidia's stock?

A major red flag would be if Nvidia loses its key support levels, including its exponential moving averages and price channel. A loss of these levels would signal potential further downside and greater concerns about the stock's future.

How does the creator suggest trading Nvidia stock at this point?

The creator suggests waiting for a clear bullish pattern to develop, especially if Nvidia continues to form a flag or wedge pattern. They also recommend using tight stop losses if attempting to short the stock based on current technical indicators.

What are the creator's expectations if Nvidia continues to rise?

If Nvidia continues to rise, the next target for the creator would be around 167. However, they are not very interested in this small potential upside and are more focused on waiting for a more significant pattern to develop.

What role does options flow play in the creator's analysis?

The creator looks at options flow to gauge market sentiment, but in this case, they noted that the options flow has been slow and unremarkable, offering no strong signals either bullish or bearish.