Is NVDA correction over? Targeting $224

29 mai 2022

Greetings All,

I'm bullish on the NVDA. I focus this analysis on the 2h chart.

Bull Thesis:

• NVDA is currently in the C wave (last wave) of Elliot's ABC corrective zigzag pattern.
  
• NVDA has formed a larger falling wedge pattern (bullish) within the ABC corrective pattern. NVDA broke to the upside of this pattern last week.
  
• NVDA closed above the 9EMA and 20MA. Both EMAs are curling upward (bullish).
  
• Bullish RSI divergence (price is falling, indicator bottoms are rising).
  
• Monthly, weekly, and daily RSIs are in the buy zone.
  
• Long bullish candle with strong volume on 26 May (after earnings) indicate strong sentiment and momentum.
  
• Targeting the 50% daily retracement level (~$224). NVDA may even close the first of two gaps at $231.
  

I anticipate a pullback to the $170 area before a retest and break in resistance, given the oversold condition (RSI) on the 2h chart. Alternatively, NVDA may consolidate between support and resistance before breaking either. If NVDA breaks support, my bull thesis is invalid.

Wishing you success in your trades.

Happy Trading!