On track for a correction - according to technicals
$NVIDIA(NVDA.US$First off, I am not a shorter. I sold exactly at 141 when the ticker headbutted the upper BOLL bands combined with a shift of buyer-seller balance - a testament to improved trading accuracy through relying on technicals.
According to TA, we are expecting a short-term correction.
1) KDJ - K has made a steep cross below D, forming a death cross which signals a strong shift of immediate trend.
2) MACD indicator may lag behind but its indicators are more reliable, especially in a longer time frame. The diff line may still be above the signal line which inclines to bullishness but the gap is closing and its closing fast (1.3 points).
1) KDJ - K has made a steep cross below D, forming a death cross which signals a strong shift of immediate trend.
2) MACD indicator may lag behind but its indicators are more reliable, especially in a longer time frame. The diff line may still be above the signal line which inclines to bullishness but the gap is closing and its closing fast (1.3 points).
The last time the signal line crossed the diff was on 14 March’24, lasting nearly 2 months from $910 to a low of $749. The ticker was able to recover promptly due to a strong catalyst - the earnings report. The economic environment now may be different as we’re still feeding off the exhausted post-earnings run. Another catalyst will be needed and it may take some time.
3) The price-volume action is also seen to be diverging. Whilst price continues to hike, volume is decaying on green days and the last 3 days with the biggest volumes in the month were red days. This signals exhaustion and break below support will trigger a cascading sell-off.
When to buy in?
I’ve made an earlier comment about this. The EMA9 and EMA 20 are well respected and we’ve seen the ticker bounce off these critical support lines multiple times.
We hit the EMA9 yesterday at 129, if the correction continues, the next bottom would touch EMA 20 - $118.
An all-out correction would mean touching the lower BOLL bands at $98. The last time we touched this was on April 22.
A bull run like NVDA happens 5% of the time in the market and it’s extremely unsustainable. In simple terms, we’re looking at a 95% chance of correction and the above support lines should be a good lookout point.
These are my suggestions, not financial advice. Access your risk appetite and do your own DD.
Cheers!
Cheers!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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EZ_money : that's bullshit. you spouted a bunch of information but no charts or timelines to back any of that up. technicals never 100%
EZ_money : I'm not a shorter
okay 
cnkj OP EZ_money : 1) I can’t attach pictures on comments
2) My analysis is supported by exact chart pin points and timeframe. Pull out any charts in any platform, it will check out.
3) Nothing is 100% in the stock market. But it’s drastically more precise than ‘just guessing’.
EZ_money : 1 hour MACD convergence bullish
EZ_money : 4 hour KDJ reset already
Avengers 2023 : Lucky fellow
EZ_money : see you're all bullshit you spout all this with no timelines on anything