• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Can Nvidia’s Stock Skyrocket Again? Key Levels to Watch Now!
Stock

Can Nvidia’s Stock Skyrocket Again? Key Levels to Watch Now!

by June 27, 2024
by June 27, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Waiting for a perfect setup—technically or fundamentally—can sometimes be a perfect way to miss an opportunity. The disruptor is market sentiment, as it jumps the gun on an opportunity hoping to be validated well after pulling the trigger.

Case in point: NVIDIA (NVDA) in March 2023. The article NVDA Stock: Waiting For a Big Plunge? warned against buying into strength, as technical indicators signaled a potential pullback while also warning that the depth of a pullback is always unpredictable.

Instead of pulling back to $230 (or $23 after its recent 10-for-1 split), it pulled back to $250 ($25) before market sentiment, again the disruptor, snatched the opportunity that later would be validated by fundamentals.

Viewing a weekly chart, here’s what happened. Take a look at the blue arrow. That was the week of the “dip.”

CHART 1. WEEKLY CHART OF NVDA. See the blue arrow? That was the buy signal last time around.Chart source: StockCharts.com. For educational purposes.

You have to squint to see the blue arrow, which seemed like a significant decision point for bulls and bears at the time. But as investor sentiment wagered on the upside, AI demand clarified that a new “era” of artificial intelligence far outweighs a short-term market opportunity. And so you see what happened.

Is NVDA a Buy Now, or Is the AI Trade Over?

NVDA share prices have fallen hard following the euphoria driven largely by the stock split. Wall Street analysts see limited upside for Nvidia in the near term and have been known to revise their targets.

In the long term, NVDA’s outlook remains positive, due to the growing importance of AI and NVDA’s dominant position in the AI hardware market. So, while short-term gains may be modest, the chipmaker is expected to outperform the market in the long run.

But corrections can turn into downtrends. So, if you are bullish on NVDA, here are the levels to watch. Take a look at NVDA’s daily chart below.

CHART 2. DAILY CHART OF NVDA. NVDA shares are falling. But will the decline remain a dip, or might it cascade into a much stronger downtrend?Chart source: StockCharts.com. For educational purposes.

While the Chaikin Money Flow (CMF) indicates that buying pressure remains positive, it also shows bullish momentum in a steep decline. The Money Flow Index (MFI), a volume-weighted RSI, confirms this reading, showing prices declining from overbought levels alongside a bearish divergence between the indicator and NVDA.

The chart plots an Ichimoku Cloud (kumo) to map out a wider context to anticipate potential support. Here’s what to keep an eye on:

The cloud coincides with the 50% and 61.8% Fibonacci Retracement levels, which generally serve as favorable buying levels if you want to go long.The 50-day simple moving average (SMA), also commonly viewed as a potential support level, is also looking to converge with the 50% Fib level.The 50% and 61.8% Fib levels, along with the top and bottom end of the cloud, also match the two Runaway Gaps, which, if filled, tend to serve as support levels.

In short, the actionable buying range sits between $105-ish and $110. Of course, ultra-bullish market sentiment can disrupt this setup (as it did in March 2023) and send NVDA prices higher and sooner.

On the bearish side, if NVDA falls below $100, there’s a possibility the correction will become an intermediate-term downtrend. What can trigger this scenario? Unimpressive earnings in the next few quarters (its next earnings is in August).

The Takeaway

While NVDA’s long-term outlook remains bright thanks to its stronghold in the AI hardware market, expect near-term weakness. The key levels to watch for potential support are around $105 to $110, with ultra-bullish sentiment potentially pushing prices up sooner. However, if NVDA drops below $100, we could see a longer downtrend, especially if upcoming earnings disappoint. So, keep an eye on those levels and market sentiment to time your moves wisely.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • DP Trading Room: Mortgage Rates are Falling – Watch Real Estate
  • Key Breadth Indicator Flashes Buy Signal for Nasdaq 100
  • Breadth Overbought Near-Term
  • MEM TV: Capitulation Signals for a Market BOTTOM
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The 4 Best Tech Stocks to Watch Now!
next post
Trump rips Biden for not firing generals after botched Afghanistan withdrawal: ‘Incompetence’

You may also like

Bull or Bear Market? A StockCharts Member Special

March 15, 2023

The Most Important Breadth Indicator to Follow

January 21, 2023

NVIDIA’s Stock Split and Potential Correction

June 7, 2024

MEM TV: Tech Stocks Blast Higher! S&P 500 Bull Market...

January 22, 2024

US Stocks Are Lagging The World For Now, But This...

August 18, 2023

Will XRT (Retail) Sink or Soar? Here’s What the Charts...

August 16, 2024

Cryptocurrency Prices in the Spotlight, Small Caps Now in an...

December 5, 2023

Holiday Shopping Bonanza: Retail Stocks You Need to Watch

November 2, 2023

Equities Remain in Strong “Go” Trend as Tech Returns to...

December 9, 2024

Nasdaq DROPS on Weak AMZN, TSLA & GOOGL Earnings!

February 8, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Looking for the Next Entry Point...

    August 22, 2024

    Week Ahead: While NIFTY Consolidates, Closing...

    December 28, 2024

    Market In a “Wait and See”...

    February 28, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here