Nvidia - Price Analysis

Recently the tech sector has taken a hit in U.S equities. That, in combination with the lackluster earnings reports by Nvidia during which time, their CEO said the company was "crypto hungover" and had suffered a bloated inventory that could take up to two quarters to re-balance.

These negative impacts are reflected on the current technical charts. A pair of tweezer tops formed near the 1.0 mark on the fibonnaci levels. Since then, a massive downtrend has occurred with the price barreling through it's levels of support at the 0.618, 0.5, and .382 Fibonacci levels.

However, a fibonacci drawn from the point of the reversal shows us a support point at 161.95~.

If this support holds, we could see another another bounce on the way down.

The RVI is forming a fractal triple bottom which resembles the patterns seen before the price snapped up from ~170 - 220. If the support line on the RVI holds, and the price rubber bands, we could see a rise 209.

On the other hand, if supports do not hold and the sell-offs continue, the next level of firm support rests at 145.

I would expect volatility during the market open. However, you can still play the stock with various strategies. Employing long-term call options on the stock at this time could be beneficial at these price levels. To mitigate downside risk, a short-term put could be opened to net profit from any movement to the downside in the short-term. This is not financial advice, that is just one of the strategies I would employ if I chose to enter this position at this time.

Enjoy! Have a great weekend!