NVDA Stock - Key Levels For NVIDIA

Summary

In this Nvidia daily update, the stock has seen some downward movement, with Nvidia closing down about 3%. Despite this, the analysis remains bullish overall, with no major red flags identified. The video covers key support levels (153, 148, 145) that Nvidia could potentially hold in case of further downtrend. The stock still shows strong momentum, and bearish signals are unlikely to emerge in the immediate future. The host also touches on options flow and forecasts a potential bounce back toward higher levels, possibly reaching around 170 by mid-July, as long as key support levels hold.

Takeaways

• 😀 Nvidia stock closed down about 3%, ending the day at $153, underperforming compared to other semiconductors like AMD and Micron.
• 😀 Despite a slight downturn, Nvidia remains bullish, with key indicators like the MACD, exponential moving averages, and stochastic in the green zone.
• 😀 There are three key support levels to watch for potential downside: $153, $149-$148, and $145. If Nvidia holds any of these, the bullish outlook remains intact.
• 😀 If Nvidia falls below $145, it could indicate bearish momentum, leading to a neutral stance where neither bullish nor bearish momentum dominates.
• 😀 A key signal for a bearish reversal would be if Nvidia closes below its 9 EMA or 21 EMA, with increasing concern if it falls below $142, the lower boundary of its rising channel.
• 😀 If Nvidia experiences further downside, a deeper correction back into the $130s or $120s is possible, but it would take time to develop unless a sudden crash occurs.
• 😀 For those bullish on Nvidia, buying the stock at lower levels like $120 or $130 would be preferable compared to purchasing at current higher prices near $160.
• 😀 The options flow for Nvidia is generally bullish, but there is a lack of extreme bullish signals, such as unusually high premiums or short expirations.
• 😀 The chart analysis suggests that Nvidia could retest the $148 level, and if that holds, the stock may continue to grind higher through July.
• 😀 A final note is that the 4-hour chart looks similar to previous patterns, indicating that Nvidia could see a brief dip to $145 before potentially rebounding and continuing its upward trend.

Q & A

What is the current status of Nvidia stock based on the video?

Nvidia stock closed down about 3% on the day, at around $153. Despite this, it has not turned bearish yet and remains bullish with strong technical indicators supporting its position.

Why was the performance of Nvidia considered an underperformance compared to other semiconductor stocks?

Nvidia's 3% decline was considered underperformance because other semiconductor stocks, like AMD, ARM, and Marll, also saw declines, but Nvidia's drop was relatively larger compared to the overall sector.

What are the key support levels to watch for Nvidia moving forward?

The key support levels to watch are $153, $148, and $145. If Nvidia drops below these levels, it could indicate a deeper correction, but as long as it holds these levels, the stock is expected to remain bullish.

What technical indicators are being used to assess Nvidia's stock performance?

The video mentions several technical indicators: the MACD (which is bullish), exponential moving averages (EMA), the stochastic indicator (which is in the green zone), and the 9-EMA, which Nvidia has been holding.

What is the significance of the $153 price point for Nvidia?

$153 is an important level because it marks previous all-time highs and has some validation as a support level. It's the first key level to watch if Nvidia faces downward pressure.

Why does the speaker consider the $148-$149 range a stronger support level than $153?

The $148-$149 range is considered stronger support because it has more validation, with more candle touches in the past, indicating stronger resistance turned support compared to the $153 level, which had fewer touches.

What would indicate a bearish trend for Nvidia stock?

Bearish signs would include closing below the 9-EMA, losing support levels like $148 or $145, and a consistent failure to hold key pivot points. If these conditions occur, the stock could enter a more neutral or bearish state.

What does the speaker expect Nvidia's stock price to do if the bullish trend continues?

If the bullish trend continues, Nvidia could potentially rise towards $170 by mid to late July, as it remains in a rising daily channel, with higher thresholds for upside movement.

What signs would suggest that Nvidia stock could see a deeper correction or bearish momentum?

Signs of a deeper correction or bearish momentum would include a consistent close below the 9-EMA, falling below the 21-EMA, and breaking key support levels like $142. These could trigger a more significant decline towards the 130s or 120s.

How does the speaker view the current options flow for Nvidia stock?

The options flow is mostly bullish but not particularly aggressive. The speaker notes that while the flow is positive, there aren't any unusual or high-impact moves in the options market that stand out as extreme bullish signals.