• NVDA is very bullish, and it seems it wants to hit its next resistance at $289;
• As seen in the weekly chart, there’s no top sign nor weakness signs indicating that it could correct from here;
• What’s more, NVDA triggered an IH&S chart pattern in January, and it did an upwards breakout from the Descending Channel (purple lines) it was trapped inside;
• Could NVDA correct from here? Yes, and a pullback to its 21 ema would be acceptable, as the last time we hit it was a couple of months ago. However, in order for a pullback to materialize, we must see a reversal pattern in the daily chart:
• In the daily chart we see nothing but a series of higher highs/lows, above the 21 ema – An incredibly strong bull trend;
• We would need to see a clear bearish structure, like a lower high/low, a top/reversal chart pattern like a Double Top, H&S, etc. So far, there isn’t any meaningful bearish sign;
• In this scenario, NVDA could trigger a sharper correction, and maybe even fill the gap at $210 (which is very close to the 21 ema in the weekly chart, by the way);
• However, even if NVDA does a correction of this magnitude, it wouldn’t ruin the bull trend seen in the weekly chart, only in the daily chart;
• I’ll keep you updated on this.
Remember to follow me to keep in touch with my daily analysis!
• As seen in the weekly chart, there’s no top sign nor weakness signs indicating that it could correct from here;
• What’s more, NVDA triggered an IH&S chart pattern in January, and it did an upwards breakout from the Descending Channel (purple lines) it was trapped inside;
• Could NVDA correct from here? Yes, and a pullback to its 21 ema would be acceptable, as the last time we hit it was a couple of months ago. However, in order for a pullback to materialize, we must see a reversal pattern in the daily chart:
• In the daily chart we see nothing but a series of higher highs/lows, above the 21 ema – An incredibly strong bull trend;
• We would need to see a clear bearish structure, like a lower high/low, a top/reversal chart pattern like a Double Top, H&S, etc. So far, there isn’t any meaningful bearish sign;
• In this scenario, NVDA could trigger a sharper correction, and maybe even fill the gap at $210 (which is very close to the 21 ema in the weekly chart, by the way);
• However, even if NVDA does a correction of this magnitude, it wouldn’t ruin the bull trend seen in the weekly chart, only in the daily chart;
• I’ll keep you updated on this.
Remember to follow me to keep in touch with my daily analysis!
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