NVDA Stock - Crucial Levels On NVIDIA Here

Summary

In this Nvidia daily update video, the host discusses the stock's performance, technical analysis, and key levels to watch. After a strong gap-up, Nvidia faced a significant 8% drop, with resistance at the top of the channel and concerns over a potential bearish trend. The host highlights the importance of the 175 support level, where the stock could either hold a higher low or start a downtrend. Market volatility and the behavior of the MACD and options flow are also noted as factors to monitor. The video concludes with a focus on upcoming days and potential market movements.

Takeaways

• 😀 The video provides an update on Nvidia's stock performance, highlighting a reversal after a gap-up in the morning.
• 😀 The speaker emphasizes that this analysis is not financial advice and shares their personal insights with members daily through a subscription-based service.
• 😀 Nvidia's stock closed down 8% despite the morning gap-up, reaching the top of a resistance channel but facing rejection.
• 😀 The 9 exponential moving average (EMA) has been a key level of resistance for Nvidia, acting as a significant barrier in past price movements.
• 😀 The market saw a bearish engulfing candle, raising concerns about potential selling pressure if the trend continues.
• 😀 The speaker discusses the potential impact of a pullback as August begins, with a historical tendency for minor dips in the first week or two of the month.
• 😀 A crucial support level to watch for Nvidia is $175, where the 9 EMA is positioned. If the stock stays above this, the bulls are still in control.
• 😀 If Nvidia loses the $175 level, it could signify a shift toward a bearish trend with the possibility of a lower low forming.
• 😀 The speaker compares Nvidia's current situation to previous instances where it showed bullish behavior but may now be at risk due to elevated volume and weaker candlestick patterns.
• 😀 Despite some bearish options flow, overall options activity still leans bullish for Nvidia, with significant bullish positions such as a $1.4 million LEAP for December 2027.
• 😀 The weekly chart suggests that Nvidia is at a critical juncture, with potential bearish signals emerging in the MACD and SMI indicators, warranting close monitoring over the coming days.

Q & A

What is the main focus of the video?

The main focus of the video is an analysis of Nvidia's stock movement, including recent price action, technical indicators, and potential future trends.

What significant event occurred with Nvidia stock at the start of the day?

Nvidia experienced a strong gap-up in the morning, but the stock closed down 8% by the end of the day, reflecting a sharp reversal.

Why is the 175 price level significant for Nvidia stock?

The 175 level is critical because it aligns with the nine exponential moving average (EMA) and represents a pivotal support level. If Nvidia holds above it, the bullish trend may continue, but if it falls below, it could signal a shift toward a bearish trend.

What technical pattern does the speaker mention regarding Nvidia stock?

The speaker mentions a potential bearish flag setup and a bearish engulfing candle on elevated volume, which suggests potential selling pressure. However, they also caution that the pattern could evolve differently depending on how the stock behaves in the coming days.

What is the potential impact of losing the 175 support level?

Losing the 175 support level could change the market dynamics, possibly leading to a shift from higher highs and higher lows to lower lows and lower highs, indicating a potential bearish trend.

What does the speaker suggest about Nvidia's long-term outlook based on the weekly chart?

The speaker notes that the weekly chart has shown a phenomenal rally for Nvidia, but there are emerging signs of weakness, such as a bearish crossover in the SMI indicator and the potential for a lower high on the MACD histogram.

What role does options flow play in Nvidia's stock analysis?

Options flow is used to gauge the overall sentiment and potential future movements in Nvidia's stock. Despite some bearish flow, the overall options flow is still bullish, with significant long positions like a 1.4 million leap for December 2027, indicating confidence in Nvidia's future performance.

What is the speaker’s outlook for Nvidia stock if it maintains the 175 level?

If Nvidia holds above 175, the speaker remains optimistic about the stock's prospects, suggesting that the bulls would still be in control, and there's potential for a bounce back to the 180 level to fill a fair value gap.

What concern does the speaker have about the broader market in relation to Nvidia?

The speaker expresses concern that if Nvidia breaks below 175, it could signal broader market weakness, as the stock could influence other stocks and the overall market trend, particularly given the bearish engulfing pattern seen in the market.

How does the speaker feel about other major companies like Meta and Tesla in comparison to Nvidia?

The speaker acknowledges Meta's strength, despite not personally using its products, and mentions having a soft spot for Netflix, though they note that Tesla remains their favorite company. The speaker also expresses a personal interest in Nvidia's performance but prefers to avoid mixing personal bias with technical analysis.