🎁Head & Shoulders Top vs. Triple Bottom: $NVDA Targets $600?

2023-11-22

The share price of $NVIDIA Corp(NVDA)$ broke through a new all-time high on Monday and fell slightly ahead of Tuesday's earnings release. Following the after-hours earnings release, $NVIDIA Corp(NVDA)$ rose 0.92% in pre-market trading on Wednesday.

What will happen to the price of $NVIDIA Corp(NVDA)$ after the results, will it continue to reach new highs or will it start to fall?

First, let’s look at the earnings results:

The overall quarterly revenue was $18.12 billion, significantly exceeding the analyst and management expectations of $16.1 billion; Adjusted net profit of $10bn, sharply beating analysts' expectations of $8.43bn.

At the same time, Nvidia’s guidance for the next quarter is also higher than market analysts’ expectations: $NVIDIA Corp(NVDA)$ expects revenue of around $20 billion in the next quarter, which is much higher than the 17.98 billion expected by analysts!

Then, let’s make some observations on technical patterns:

There are some views in the market that $NVIDIA Corp(NVDA)$ will turn downward and its stock price are now reaching a peak.
Some people believe that $NVIDIA Corp(NVDA)$ is now in a triple bottom pattern, but not head and shoulders top.

How to judge a pattern?

Let’s look at a head & shoulders top: when the right shoulder is lower than the left shoulder, and the price breaks down the neckline successfully, the pattern is formed.

Head and Shoulders Top - Chart Pattern

Then, let’s take a look at a triple bottom pattern: if you see 3 lows and the price breaks through the previous highs, it can form a new triple bottom pattern. The share price can offer even more upside potential with a symmetrical price range.

a triple bottom chart pattern illustration

Now, see the pattern of $NVIDIA Corp(NVDA)$

Obviously $NVIDIA Corp(NVDA)$ did not break through the neckline on October 31, and the head and shoulders top pattern was failed.

Nvidia shares continue to rebound and broke through all-time highs this Monday.

Once this breakout is established, refer to the pattern illustration above, $NVIDIA Corp(NVDA)$ will continue to rise, and the minimum increase range will be around $100 ($400-505—$505~600)to reach above $600.

Questions for Tigers

Head & Shoulders Top vs. Triple Bottom? What’s your choices?
Do you trust technical analysis?
Do you use technical analysis tools or principle trading to make trading decisions?

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Comments

koolgal
2023-11-24
koolgal
🌟🌟🌟Nvidia's share price fell 2.4% on Wednesday on news that US chips curb to China will affect its sales growth in that region. China is Nvidia's 3rd largest market.

Nvidia expected sales in Q4 23 maybe negatively impacted by this. However the shortfall will be more than offset by strong growth in other regions.

I believe that this is just a temporary setback and Nvidia will continue its strong growth trajectory well into the future.

While Technical analysis is useful to identify trends, it is still important to look at fundamentals and the news affecting Nvidia.

Nvidia is at the forefront of AI revolution and none of the Wall Street Analysts have a Sell Rating on Nvidia. Instead it is a Buy Rating, Target price of USD 600.

So I believe the technical pattern is a Triple Bottom and Nvidia's share price will be going up like a rocket to the moon in December.

@Tiger_chat
- koolgalReplyBorisBack:
  Nvidia's biggest customers are Big Tech like Microsoft, Google, Meta Platforms.
- koolgalReplyLeilaLynch:
  It could be anything like further restrictions on chip sales.
- koolgalReplyLeilaLynch:
  There is always some downside risk in investing.
- koolgalReplyFranklinMorley:
  It is a fine balancing act for Nvidia.
- koolgalReplyBaronLyly:
  I will be monitoring the market action for Nvidia next week to see it how goes.
icycrystal
2023-11-23
icycrystal
technical analysis can be a good tool to use for entering and exiting a trade. needs more confirmation than just using technical analysis. the important factor is still looking at the fundamentals of the company, the business model, etc... takes efforts and hard work when diving into the company's financial health, their plans on how to grow its business, etc... it's important to go for established companies with good fundamentals and have survived through and through [smile] [smile] [smile]
- Universe宇宙Replyicycrystal:
  [ShakeHands]
- icycrystal:
  @DiAngel @HelenJanet @Shyon @Aqa @LMSunshine @koolgal @GoodLife99 @Universe宇宙 @rL @Zarkness
  comment and win coins [smile] [smile] [smile]
Ah_Meng
2023-11-23
Ah_Meng
Indeed NVDA has been in the limelight. It started its uptrend from Oct 2022! During this period, its market cap exploded 4 folds!
From the daily chart, it might appear as triple bottom. However normal triple or double bottom formation followed a certain amount of downtrend. This doesn't apply to NVDA. As mentioned, NVDA has been on a 🐂 run. I have included a weekly chart below. You will find 3 lines, red, orange and green. Instead of head and shoulders, I would suggest a series of tops, the green being the resistance line. Red line is the support, at around 402, while orange line around 304 is the price target for the tops. A gap up formed between 304 and 371 in May 2023. The tendency is to fill this gap and 304 happens to be close to the tops target.
Furthermore, RSI in the weekly chart has been on a downtrend since the tops formed, indicating a divergence. This is further signal that the price of NVDA has peaked in the middle term and will be heading down.
Universe宇宙
2023-11-23
Universe宇宙
@TigerGPT grab from the internet and tell me the volume of principal trading for nvda
- TigerGPT:
  The latest volume of principal trading for NVIDIA Corp (NVDA) is 90.10 million shares. Please note that this information is subject to change as trading activity continues throughout the day.
Alubin
2023-11-24
Alubin
I dun 100% trust technical analysis but they are good as starting point to do your own due diligence.
BertScott
2023-11-23
BertScott
Perfect analysis and future forcast of NVIDIA Corp, now I have a better perseption of NVIDIA’s leadership in its field.

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