Technical analysis and price forecast for NVDA stock
NVDA’s stock has been in a robust uptrend as depicted by the weekly chart, with the price recently breaking past historical resistance levels. As of the latest data, NVDA trades at $1148.25, with a recent high of $1154.92.
In Oct 2022 as most market participants were scared and calling for further crashes, my analysis and opinion was to buy the dip with a specific trade plan to buy NVDA stock as it was between 107 USD and 121 USD.
Here is what I see now. Spoiler – it will be a healthy profit takers’ correction, not a crash. But that correction might even take the stock price a bit less than 1k USD… For that and where to buy, if so, you’ll have to follow ForexLive.com as we follow the upcoming price action. There is no perfect win rate and I would be glad to sustain 60%-80% on trade plans, especially when most carry a reward vs risk on minimum 2 to 1, typically.
Technical analysis NVDA
-
Uptrend continuity for Nvidia stock: The long-term trend, as observed on the weekly chart, shows a steady upward trajectory. The support line drawn from the lows of previous years underscores a strong bullish momentum.
-
Resistance to watch: Although the price is nearing a psychological resistance level at $1200, the strength of the uptrend suggests that there’s potential for breaking this resistance. However, such breakouts often attract profit-taking, which could lead to a pullback.
-
Profit-taking Indications: The daily chart highlights recent days with modest gains, which suggests that the momentum is slowing down as it nears the $1200 level. The label “Partial profit-takers” indicates an expectation that traders who have accumulated significant gains might start to sell off parts of their positions to lock in profits. This is a common strategy to reduce exposure and manage risk, especially after a strong run.
Price forecast NVDA
-
Short-term: In the short term, expect volatility as the price approaches the $1200 level. There is more than a 50% chance that partial profit-takers will emerge, potentially causing the price to retract or consolidate. This should not be seen as a major trend reversal but rather a normal market reaction to a significant price milestone. Where can it go… Folllow ForexLive.com in the future for updates according to the developments in Nvidia stock price action.
-
Medium to Long-Term: Should the $1200 resistance be tested and successfully broken, the next set of targets could be significantly higher, given the company’s strong market position and technological advancements. However, if $1200 holds strong, expect some sideways movement or a mild pullback as the market reassesses its position.
Investment Strategy
-
For long-term investors: Stay the course but be prepared for possible short-term dips caused by profit-taking. These could represent buying opportunities for those looking to increase their exposure. After the 10 to 1 split, this baby can also go to 200 USD within the next 2 years, IMO… This is not far-fetched as AI is not a hype and is a real revolution that has only started to be a game changer in productivity for market, industries and individuals. Nvidia is the clear winner of this revolution at this phase of the cycle.
-
For Traders: Keep an eye on volume and price action near the $1200 level for signs of reversal or continuation. Setting stop-losses just below recent support levels could help mitigate risks associated with a potential pullback.
Conclusion for the current technical analysis and price forecast for NVDA stock – this darling of all darlings remains in a strong position with potential upside beyond $1200 but the near time halt and dip might be significant enough to mitigate risk. Traders and investors should be cautious about potential profit-taking around this level, which could temporarily influence the price dynamics. I you are on a profitable long, I think it is legit to take off 25%, at your discretion, off the table, and then be patient an rebuy the next potential dip. This analysis does not suggest a major trend reversal, but rather typical market fluctuations within a major bullish trend. Invest or trade NVDA stock at your risk only and visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com. Source