Nvidia has been an absolute rocket just over a year now, but nothing lasts forever. In the larger perspective, and in terms of the market we are in a very critical stage. A stage where, even if perfection has not yet occurred, the party in any case, theoretically, can take the end of the year. Not infrequently the heads of these occasions to the relatively strong reactions, even if the later is far from always mark the final top. An opportunity exists to give the bulls a tjuvnyp in Nvidia. Time to quote Muhamed Ali – ”Float like a butterfly, sting like a bee”
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Nvidia, this brave tjurgunstling has crushed everything in its path the last approximately year. Only since the bottom in February 2016 at around 25 dollars, the stock is up about 7 times. From 25 dollars to 169 dollars is what has been harvested since then. The relationship between 25 and 169 is interesting because the price then had a 360 degree relationship on the Gann wheel. A relationship that tend to produce reactions, and not infrequently large trendvändningar.
Now, I want to point out that at this stage it does not yet exist, evidence for a major reversal of the trend in Nvidia right now. However, there are good reasons to assume that we will correct and consolidate in each case, the parts of the previous upturn.
Besides just prisrelationerna we have also fine arguments in the form of negative divergence from our daily oscillators, i.e. the RSI and the Slow stochastic indicator. The RSI as it is more rigid, has begun construction of lower tops and lower bottoms and looks to wait for an acceleration down.
We look at pricing we have a powerful first reaction down which is now been followed by the events that debuted. A the events that debuted that has the characteristic behavior of an ABC wave. There is rarely a market will only fall sharply without any form of återtest of the first lågpunkten before any rise can start again.
For the short-term operator is now able to shorten the Nvidia. Yesterday’s stack indicates a possible turning point in the ongoing rebound. The plan is to go short on confirmation of yesterdays bar, which means trading below yesterday’s close on the 157,09 dollars. The stops are placed conveniently as a hard stop on the 162 dollars and the target level is set to 145 dollars which is a support on the downside.
Nvidia – an overview
P/E (est 2017)
Direct avk. (est 2017)