Nvidia NVDA Correction is Around the Corner

Elliott Wave Forecast Team ElliottWave-Forecast.com

The American semiconductors company Nvidia (NASDAQ: NVDA) is specialized is designing graphics processing units (GPUs) for the gaming, cryptocurrency, and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.

Nvidia is considered as one of the strongest technology companies this year and its stock NVDA enjoyed a great rally this year despite the recent 15% pullback. If we compare NVDA performance for this year to its main competitors Intel (INTC) and Advanced Micro Devices (AMD) then we can notice how strong the company has been this year, as well as outperforming both the Technology Select Sector SPDR ETF (XLK), which is the best performer sector for 2017, and The VanEck Vectors Semiconductor ETF (SMH) which contains the mega-cap semiconductors companies.

To understand the current situation for the Stock, we’ll explain the technical chart using Elliott Wave Theory and present 2 possible scenarios that could be taking place by the end of this year:

1st Scenario: NVDA Ending Diagonal

In the chart above, we are presenting the cycle from July low as 5 waves ending diagonal structure which is still incomplete. The move is missing another leg higher toward extreme area $227 – $242 where the stock will be expected to end that cycle and start a 3 waves correction at least.

2nd Scenario: NVDA Double Three

In the second chart, we are considering the cycle from July low completed as 7 swings double three structure after it reached equal legs area $211 – $229. Therefore the stock already started the correction lower with the first leg taking place during the recent decline. In this case, NVDA short term bounce is expected to fail below the recent $218 peak to be able to extend the correction lower toward the 50%-61.8% Fibonacci retracement of the rally around $156 – $142 area.

Conclusion

Nvidia short term analysis is suggesting a correction to take place either after making new all time highs or the pullback is already in progress. Consequently buyers need to be careful during the next period and it would be wise to wait for a clear corrective structure to take place before re-entering the long side.

Become a Successful Trader and Master Elliott Wave like a Pro. Start your Free 14 Day Trial at - Elliott Wave Forecast.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.