NVDA price forecast for traders and investors at ForexLive.com
Predicting where a stock might rest after a significant rally, especially when it’s creating new all-time highs (ATH) almost weekly, presents a unique challenge in technical analysis. NVDA (NVIDIA Corporation) is currently in such a phase, with its price action tightly confined within a strong bull channel. Traditional methods of identifying potential resistance levels from historical prices become less effective in this scenario, as there is little to no precedent to guide predictions.
Measured move explained
What is a measured move? 📈
- Definition: A measured move is a technical analysis pattern used to predict future price targets based on the length of previous significant price movements.
- Logic: The assumption is that the price will replicate the magnitude of its prior leg, suggesting symmetry and consistency in market behavior.
- Why qqual length?:
- Psychology: Market participants often project similar gains or losses, leading to repetitive price action.
- Momentum: A strong trend tends to extend by a similar distance as the prior move before encountering significant resistance.
- Not 3x or 1.5x?:
- Practicality: While variations exist, a 1:1 ratio is most common and practical for projections. Deviations often need additional factors or patterns for validation.
Key points for traders and investors
Current Price Action 🚀
- NVDA is trading at $135.58, indicating a strong bullish trend.
Technical Analysis 🔍
- The stock’s price movement within a tight bull channel signifies persistent buying interest and strength.
Measured Move Projection 🎯
- The anticipated resistance zone, using the measured move technique, is identified between $142.50 and $151.50.
Potential Selling Pressure 📉
- As NVDA approaches this target range, traders and investors should be vigilant for signs of increased selling pressure or profit-taking activities, which might lead to a consolidation or pullback.
Strategic considerations
For Traders ⚖️
- Monitor price action closely as NVDA approaches the $142.50 – $151.50 range.
- Look for reversal patterns, volume spikes, or other technical indicators signaling a shift in market sentiment.
For Investors 💡
- Consider the broader market context and the company’s fundamentals.
- While technical indicators suggest a potential short-term top, NVDA’s long-term growth prospects remain compelling.
- Any pullbacks could present buying opportunities.
Wrapping up the NVDA PRICE FORECAST FOR NOW
FOR NOW means that the expected area of the next resistance, between $142.50 and $151.50, is by no means the final top for the stock ever again. I personally think that NVDA will get to $200 within the next 3 years. But it is an area where swing traders and risk mitigators, as well as highly speculative short sellers might want to be exposedd to a technical case and logic of an interesting area for a possible short term reversal. Still, this reversal might be quite lucrative for the contrarian market partipicipant.
Why Should You Care? 🤔
- Reminder: I would like to remind you that there are others who do look at the measured move, including trading algorithms.
- Price Action: If you’re not looking for any reason to sell any part of NVDA yet, that’s fine. You might want to disregard the article, although it could be beneficial to follow the price action around $142 to $155 to see if we get a possible rest and pullback in this amazing stock of the magnificent 7 and now the stock of the biggest market cap company in the world.
- Risk Mitigation: For those seeking to mitigate risk by lowering position size, considering the mentioned area as a potential zone to reduce exposure could be prudent.
Summary for this NVDA technical analysis and price forecast 📝
- Measured move: A valuable tool for projecting potential price targets in the absence of historical resistance levels.
- Current target: NVDA might encounter technical sellers between $142.50 and $151.50.
- Strategy: Use this method along with other technical and fundamental analyses for informed decision-making.
By using the measured move analysis shown in the chart, traders and investors can better anticipate where NVDA might encounter resistance, despite the challenges of predicting movements in a rapidly rising stock. This approach provides a structured framework to guide trading and investment strategies in a high-momentum market environment. Visit ForexLive.com for further updates.
This article was written by Itai Levitan at www.forexlive.com.
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