Nvidia Weekly Price Forecast – Nvidia Continues to Defy Gravity

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NVIDIA Weekly Technical Analysis

Taking a look at the Nvidia weekly chart, you can see that we initially pulled back and then went straight up in the air again. This is the very definition of a mania slash bubble. Six weeks go by, we’re up 60%. It’s not normal behavior. It’s more like Bitcoin, but this is the symptom of a wider problem where everybody’s investing in the same thing.

Don’t get me wrong, I don’t think Nvidia is something that you should start shorting, but I do think that it’s overdone by almost any metric that you could imagine. You could take a look at the RSI or the Relative Strength Index, and we are at extraordinarily high levels, currently near 87. That doesn’t mean we have to break down again.

But what it does mean is that if you are chasing it up here, you’re asking to lose money on a pullback and a significant one, maybe one of $100, then you can start to dip your toe in the water. Unfortunately, unless you’re already involved in this, you are chasing the trade, which is an extraordinarily dangerous place to be.

At this point in time, you are either involved in this market, or you were watching a go by. Perhaps you can trade options, but to step in and throw a lot of money at this chart right now is risky behavior, to say the least. Keep in mind that the market could drop 20% tomorrow, and it wouldn’t change much from the aspect of whether or not it’s in an uptrend.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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