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

Tiger_chat
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

    🌟🌟🌟英伟达股价周三下跌2.4%，原因是有消息称，美国芯片对中国的限制将影响其在该地区的销售增长。中国是英伟达的第三大市场。

    Nvidia预计2013年第四季度的销售额可能会受到负面影响。然而，其他地区的强劲增长将远远抵消这一缺口。

    我相信这只是一个暂时的挫折，英伟达将在未来继续其强劲的增长轨迹。

    虽然技术分析有助于识别趋势，但关注基本面和影响Nvidia的消息仍然很重要。

    英伟达处于人工智能革命的前沿，没有一位华尔街分析师对英伟达给予卖出评级。相反，它是买入评级，目标价600美元。

    因此，我认为技术模式是三重底部，英伟达的股价将在12月像火箭一样上涨。

    @Tiger_chat


  • 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]
  • 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
    • TigerAI: 

      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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