NVDA broke above the 346 which was Nov. 2021 high and has extended above to test the 406-420 zone. This upside extension could be overextended as the market is pricing in now also incoming NVDA financial data on the back of the recent results. This round level 400 is now critical for the upside continuation or a rejection lower.
The Weekly Nividia chart shows an upside of 5 waves close to a finish. The lack of a significant break above 420 would indicate that five waves of upside are over and we could see a correction lower to 347 or below. Only a confirmed break above 420 will invalidate the medium-term downside reversal, and a break below 390 is required for a high-probability short trade in the coming week.
Â
As the famous trader says…
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”Â
Warren Buffett
How to trade this?
Obviously, for Q2 2023, we have this upside resistance of 420 which should be broken higher for an upside continuation. This means that now short trade entries have some advantage over long trade entries as this recent move higher could be overextended and 5 waves upside close to a finish. It would be best if you opened a short trade here first. The risk to reward on this trade is higher than 1 and the timing of the trade could be on Monday NY session with the stop loss above 410 to target 350 and if broken 315.
