NVDA Stock - Did Bulls Crush The Bears Again?

Summary

In this Nvidia daily update, the speaker provides an in-depth technical analysis of Nvidia's stock, focusing on its recent performance and future trends. The analysis highlights a missed opportunity for bearish movements, with bears failing to capitalize on a potential reversal. The video discusses key price levels, including 174 and 165, which will determine the direction of the stock. The speaker emphasizes the stock's resilience, ongoing bullish momentum, and the importance of monitoring the MACD and support levels. Overall, while Nvidia remains in an uptrend, caution is advised as the stock shows signs of being extended.

Takeaways

• 😀 Nvidia stock had a strong day, up 1.73%, surprising many, including the speaker who expected less movement.
• 😀 Despite some bearish signals, the bears missed their opportunity to push the stock lower, and the bulls gained control.
• 😀 A potential double top pattern is forming, with resistance around the $174 mark. This could indicate a reversal if the stock loses the $165 support level.
• 😀 If Nvidia breaks and holds above $174, the bulls could see further gains, with favorable risk/reward for long positions.
• 😀 Traders should be cautious of liquidity sweeps, where the price could briefly drop below a key level and then rebound sharply.
• 😀 The Nvidia stock has been resilient, with little room for pullbacks despite the stock's aggressive uptrend.
• 😀 The MACD indicator is showing elevated levels, which suggest the stock is extended and could face a slowdown at some point.
• 😀 Although the stock remains in an uptrend, the MACD’s signs of potential weakening are worth watching for future reversal signals.
• 😀 On the weekly chart, the stock showed initial weakness but is recovering, with the potential for higher highs if the momentum continues.
• 😀 The speaker emphasizes that the current rally is unsustainable long-term, suggesting that a pullback to around $150 could be possible when the trend shifts.
• 😀 Overall, the bulls remain in control of Nvidia's stock for now, with the short-term focus on breaking or holding the $174 level to confirm further upside.

Q & A

What is the primary focus of the video?

The video focuses on analyzing Nvidia's stock performance, technical trends, and potential future movements in the market, especially considering recent patterns and opportunities for both bears and bulls.

What is the current situation with Nvidia's stock according to the video?

Nvidia's stock has shown resilience, with a 1.73% increase, outperforming expectations. The bears had a chance to take control, but they missed it, and now the bulls are in the driver's seat, at least in the short term.

What was the opportunity the bears missed?

The bears had an opportunity to reverse Nvidia's stock trend by triggering a bearish pattern known as a 'dead cat bounce' after the stock made a higher high, lower high, and a lower low. However, they failed to capitalize on this, and the stock continued to rise.

What is a double top pattern, and how could it affect Nvidia's stock?

A double top is a technical pattern where the stock tests a resistance level twice but fails to break through. If Nvidia forms a double top near the 174 area and loses the neckline around 165, it could trigger a bearish reversal.

What would indicate a bullish continuation for Nvidia's stock?

If Nvidia breaks above the 174 resistance, retests it as support, and holds above this level, it would indicate a bullish continuation. A favorable risk-to-reward scenario could emerge for traders, with a potential upward trend.

Why are liquidity sweeps mentioned in the context of Nvidia's stock?

Liquidity sweeps refer to sudden price movements that clear stop-loss orders or other orders placed by traders, creating false breakouts. These sweeps can result in significant price reversals, which is why traders should be cautious when relying on breakouts.

What does the MACD indicator suggest about Nvidia's stock at the moment?

The MACD is showing an elevated level, indicating that the stock is in an overbought condition. While the MACD is still positive, there is a risk that the stock may soon encounter a correction. However, the trend remains upward as long as the stock stays above the nine-period exponential moving average.

How does the weekly chart look for Nvidia?

The weekly chart started weakly but recovered, indicating that the stock may be forming another higher high. While the stock's rally has been impressive, past instances show that when the MACD starts making lower highs, a reversal could occur. The stock remains in an uptrend for now.

What could be a major area of support for Nvidia's stock if it starts to pull back?

If Nvidia starts to pull back, a major area of support would likely be near the exponential moving averages around the $150 per share range. This support zone could act as a crucial level for bulls to step back in.

What is the overall outlook for Nvidia's stock according to the video?

The overall outlook remains bullish for Nvidia's stock, with the bulls currently in control after the bears missed an opportunity for a short-term reversal. While the stock is extended, there's no clear sign of an immediate downturn unless the trend is broken in the future.