- Nvidia is looking a little softer during the trading session here on Tuesday after an explosive Monday. It was announced on Monday that Nvidia was going to purchase a huge portion of OpenAI investing $100 billion in order to expand its footprint across AI.
- And of course, people got excited. The market shot straight up in the air and slammed right into the $184 level, which had been a previous high. So the question is, can we break above $184? I really don't see anything on this chart that tells me we can't. Although purists would perhaps say this is an inside candle. It’s a Bearish Harami. I don't know about that. That doesn't typically end up being a very reliable signal anyways.
Many Will Have Taken Profit Late Tuesday
The reality is some people took advantage of their profit. If we can get above that $184 level, then I think Nvidia can really start to take off. And in fact, the measured move of the consolidation that we're at the top of suggests that we could go $20, $204 a share. I don't see any reason why that's not possible considering that passive investing dictates that everybody watching this video that has any retirement probably owns Nvidia to one extent or the other. If we fall from here, there is a significant amount of support at the $175 level where we launched from, and then again at the 50 day EMA, followed by of course the $164 level. Nvidia is likely to continue going higher and quite frankly, if we get a stock market that gets in rally mode again, it's almost going to force Nvidia to rally right along with it. Remember, NVDA is one of the biggest components of the stock market at the moment, and therefore it is likely that it will continue to be bullish over the longer-term.
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