NVDA to $170K EOY

30 Kas

With the Magic Linear Regression Channel [MW] by mwrightinc, we built a channel on the daily chart that shows that NVDA looks like it may be beginning a bounce from the channel baseline. Using the Multi-VWAP [MW] indicator by mwrightinc, we can also see that today, NVDA reclaimed the 5 Day anchored volume weighted average price (AVWAP). We can also see that after we lose the bearish data from 5 days ago that we will have a rising 5-Day AVWAP, which, according to Brian Shannon of AlphaTrends, is a MUST before entering into any long positions. NVDA also reclaimed the 50 Day AVWAP. Another very bullish sign.

With a second Magic Linear Regression Channel, or by just drawing a trendline from the pivot high close from June 18th, 2023, we can see that $135.58 was broken as support, but yesterday's large bottom wick and today's continued upward momentum suggest that the level may be reclaimed in the very near future.

I see two potential scenarios playing out. A bullish one, where NVDA not only reclaims the 135.58 support, but heads back up to the top of the 1 1/2 year-old channel that has been respected at multiple levels. And, a bearish one, where NVDA continues to fall that is indicated by its recent break of a neckline from a double-top.

I believe the bullish scenario is more likely, because NVDA has already had a big move down from its earnings, and it actually beat estimates all around. NVDA is a beast, and I'm guessing that it has the potential to reach $170 by the end of the year, if the bullish scenario plays out.

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11 Ara

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NVDA broke down out of its channel with authority. If it breaks the head and shoulders neckline, it could make it down to $115. Fortunately for bulls, there is one last point of resistance - the Anchored VWAP from the largest gap up in the month of September, which can be seen with the Multi VWAP with Gaps [MW] tool. I'm not sure it will hold, though.