Nvidia Price Forecast – Nvidia Pulls Back to Find Support Again

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NVIDIA Technical Analysis

You can see that on Tuesday we fell, but we ended up forming a bit of a hammer as traders continued to jump into the stock. Keep in mind that it is now priced at 100 times multiple, which is pretty out of control, but momentum is mainly what drives the stock markets, so that shouldn’t be a huge surprise. Short-term pullbacks I think, could offer value around 740, possibly at the 20-day EMA, close to the 670 level or so. Really at this point, you’re looking to buy pullbacks if you do want to get long. I mean, we’re up about 110% since November, so clearly a little overdone, at least in the short term.

Whether or not that translates to a significant pullback remains to be seen, but as things stand right now, it’s definitely something we definitely need it. This is ridiculous. So, at this point in time, short-term traders probably continue to buy the dip, but there will come a day where Nvidia’s down 7%, and when it does, it’ll wipe a lot of people out. So, make sure you’re very careful and use your stop losses.

A break above $825, sends this market even higher. I do think eventually it tries to find $1,000, but we are starting to get stretched to the point where we’re starting to see a little bit of push back. Ultimately, people are going to get hurt if they are not careful with their money management, so I highly recommend if for no other reason than gravity, you make sure that your position size is reasonable and of course you have stop losses in place.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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