Nvidia into Support

This week’s analysis focuses on Nvidia once again. Since reaching its all-time high in June, Nvidia has experienced significant volatility. The stock initially plunged by 35%, then surged by 45%, only to decline again by around 20%.

Looking at the chart, which covers the period since November 2023, a trend line can be observed, marked in red. Nvidia retreated to this trend line at the beginning of August following its sharp 35% drop, after which it rebounded strongly.

However, in the past few days, the stock has declined again and is now approaching this key trend line. Interestingly, this trend line also coincides with a horizontal support level, indicated in green on the chart. This convergence could potentially represent a compelling buying opportunity. However, there is a reason to exercise caution: Nvidia has not reached a new all-time high, as indicated by the gap between the recent high and the all-time high on the chart. Ideally, a new high should be established before the stock retests this trend line. This gap could suggest that the trend line may eventually be broken, though it is too early to determine. We will need to monitor the situation closely in the coming days. If Nvidia finds support at this level, it could present a promising entry point. As always, proper risk management measures should be employed to protect against potential losses.

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