On December 13, 2024, with NVDA trading at 132.54, down 13.3% from its All-Time High at 152.89 (11/21/24), and bearing down on a critical 8-week support plateau at 131-132, this is what I posted to MPTraders:
NVDA Update: Approaching key support in the vicinity of 132 that if violated and sustained, could unleash the downside potential derived from a two-month top formation (everyone sees the Head and Shoulders formation by now). That said, my pattern work is telling me to give the benefit of the doubt to weakness beneath the "Neckline" at 132 to as low as 125 for the conclusion of the correction off of the ATH at 152.89 (-18% at 125) and the initiation of another upleg before "throwing in the towel in expectation of a much deeper bout of weakness that realizes the downside potential implied by the Head & Shoulders Top... Last is 133.57 off of an intraday low at 132.54...
Fast-forward to the past week, we see on my attached 4-Hour Chart that during three separate trading sessions between 12/17 and 12/20, NVDA pressed deep into my key technical "Turn Window" from 125 to 132, hitting an unconfirmed post-November corrective low at 126.35 this past Friday morning before pivoting sharply to the upside... (continued below the chart)...
At 10:20 AM ET on Friday, this is what I discussed in my latest follow-up about the price behavior of NVDA:
Three Times is a Charm? For the third time this week, NVDA spiked down into the lower reaches of my optimal corrective target window from 132 to 125-- this AM representing the latest spike low at 126.35-- and for the third time, buyers emerged, propelling NVDA higher to 130-132. As we speak, NVDA is trading at 131.14, but needs to CLOSE above 132, and then follow-through above 135.20 thereafter for my work to trigger an important upside reversal signal. As long as 125 continues to contain any forthcoming weakness, my preferred scenario argues for an NVDA corrective low and bottom around in the 125-132 support window... Last is 131.31...
This past Friday, NVDA closed up 3.5% at 135.24, more than satisfying the initial technical criteria for my work to trigger a near-term upside reversal signal. Approaching the final five sessions of 2024 and through the first week of the new year, NVDA is poised for upside continuation, perhaps heading into NVDA CEO Jensen Huang's keynote address at the Consumer Electronics Show (CES) on January 6, 2025.
Join Mike and MPTrader members for their end-of-year discussions on NVDA, individual stocks, ETFs, macro indices, Precious Metals, Energy, and Bitcoin, and their opportunistic setups for early 2025...