Nvidia plummets! Hold or take profits!

Hey everyone, ready to kaypoh a bit about $NVIDIA Corp(NVDA)$ ? Let’s dive into the nitty-gritty, lah. Nvidia has dropped from its shiok all-time high of 140 to Friday’s close at 126.57. So, should we take profits or just hold on? Let’s see what the charts and options market have to say.

From the chart angle, Nvidia was flying high, way above all the moving averages, showing a super bullish momentum until now. But if you zoom out and look at the big picture, actually the drop is no big deal. It's just a little dip lah, compared to the rocket ride up.

Now, let's kaypoh the options market. A lot of kiasu people were buying call options at the $140 mark, but once Nvidia hit $140, it collapsed back down. This shows the resistance at $140 is like a speed bump, making people take their profits and causing Nvidia to drop. We also saw some support at $135, but that’s already busted. So, let’s look at our next support level, which is sitting nicely at $120.

Looking forward, I’d expect the bullish trend to continue but maybe got some retreat to the $120 mark. Based on Nvidia’s FCF and intrinsic calculations, I would say Nvidia is trading at a fair value. For Nvidia’s share price to increase, no problem if Nvidia keeps delivering. Nvidia is indeed a solid company with a great leader. If I already own Nvidia, I’d just hold on tight, because this is just a temporary dip and Nvidia is solid. If I don’t own Nvidia, I’d wait for a further dip before I buy or maybe just have a smaller allocation in my portfolio. This is not financial advice, okay? Just my personal thoughts and musings.

What do you all think? Come, share your thoughts, like, and comment!