Nvidia has been one of the high flyers over the past few years since in 2015 when it crossed above its 200 day Moving Average. Well, if you notice on the chart below it recently broke the 200 day MA for the FIRST TIME in the past few years, and honestly the first decisive break below since 2014ish. As you know I am a big fan of the 200 day MA long term and as you can see, it WINS AGAIN.
The semiconductor sector has been absolutely crushed as of late and I believe that without the trust and leadership from NVDA continuing its steep uptrend, the likelihood of the SMH parabolic trend to continue is very small.
Once this broke the 200 day that was your warning sign, then once it STAYED BELOW and did not rebound above, that is the sign to GTFO. So many people want to rush in at the top because that is when the most coverage of the company is going on and talking about the past and how big a winner it WAS. This causes you trouble. You can see on the chart NVDA is likely set to open tomorrow in the 165-170 area, much lower after earnings. With this break, there is alot of technical damage that has been done to the chart and this will require quite the recovery to get this back in play again.
Now alot of people are trapped, and ironically tomorrow is going to be a great buying opportunity (likely) for a large bounce hen everyone is panic selling….Remember that the fakenews media are always attempting to push their own agenda for clicks, views, and to make more money off of your viewership. The best thing you can do is turn OFF the TV and look at price, volume, and volatility when looking at different assets to buy, sell, or hold.Your Remaining Votes (within 24hrs) : 10 of 10