TRENDING:

XAU/USD

EUR/USD

Nvidia beat expectations – But why is the stock dropping? Time to buy the dip?

Khit Wong Gann Explained

Feeling confused about Nvidia’s stock drop despite their stellar earnings report?

You’re not alone.

Market sentiment doesn’t align with financial performance.

In this guide, we’ll dive into how you can decode market behavior using Repeat Energy Patterns, based on the principles of W.D. Gann, to better predict stock trends and make informed decisions.

What you will learn:

How to identify and use Repeat Energy Patterns in trading

Steps to analyze Nvidia’s current trading chart

Repeat Energy Patterns: A Guide for Your Trading Decisions

Now, let’s talk about strategies.

What are repeat Energy patterns?

Repeat Energy Patterns come from WD Gann’s Stock & Commodities Course methods.

These patterns help us see trends and trading opportunities before other Technical Indicators and Patterns, such as Gartley or Butterfly.

Look for repeat patterns

In mid-August, the WD Gann Repeat Energy Indicator signaled a buy for Nvidia at $116.53.

Guess what happened next?

The price rallied up to the $129 level.

August 22: A turning point

On August 22, the indicator signaled a downtrend as the price broke at $126.93. This signaled a trend change as the price dips below the Repeat Energy Pattern. Take profit and exit the trade.

By August 27, I had made a live call to short-sell Nvidia BEFORE the earnings report on August 29.

What happened next?

Nvidia's stock fell even though revenue beat expectations. But the news wasn't enough to push the price up again.

Action plan

1. Use the WD Gann indicator.

On August 27, based on the downtrend signal, I recommended short-selling Nvidia. This wasn't a guess; it was based on the patterns we’ve been discussing.

2. Identify the repeat Energy pattern.

Examining the Stock Chart helps you see Repeat Patterns and price levels. Watch the market closely, and look for Repeat Energy Patterns to see if a change of trend, buy or sell opportunity.

Final words

The repeat Energy patterns indicate an implicit rule of the trend that drives the market. The market consistently makes lower lows, confirming the downward movement and leading to a drop in the stock price.

This trading method provides a framework for understanding market movements at the moment, not after the fact.

Remember, the key to trading is continuous learning and adapting. So keep honing your skills, stay informed, and don't fear taking calculated risks.

Happy trading!

Author

Khit Wong

Gann Explained

As a noted expert on FXStreet.com and in “Technical Analysis of Stocks & Commodities” and "Traders World," I specialize in applying W.D. Gann's complex theories to practical trading.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Week ahead: Fed’s Jackson Hole and Nvidia earnings to dictate markets

The new Fed chair, Kevin Warsh, has made few public appearances since taking the central bank helm in May, yet he’s found it difficult to steer off controversy. Question marks about his relations with the President, Donald Trump, continue to swirl, while markets are still trying to make sense of his approach to monetary policy.

CFTC Report: Oil positioning rebounds; VIX and Yen exposure turn more bearish

The week in one sentence: Speculative positioning turned more constructive in the week to August 18. WTI recorded the largest increase, followed by a sharp narrowing in CAD net shorts. VIX and JPY positioning moved the other way, while Gold remained the clearest crowded long despite a softer spot price.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.