Was That, The Top?

Monday’s open could be important for the mania stricken Nvidia (NVDA).

This site’s not the only one figuring on a top if not the top.

Here’s a link showing typical behavior of previous mania bubbles; all-the-same.

Below, are specific price action behaviors pointing to either a pause with congestion, or outright ‘bubble-pop’ reversal.

We’ll find out soon enough.

Nvidia NVDA, 3-Day Bar Chart

We’re using a three-day chart, showing the magnitude of current thrust energy (mid-panel) and similar occurrence back in late May of ’23.

A lot of things are going on … all at once.

Back as far as 2006, the magnitude of the (two) upward thrust spikes has never happened before.

Is this a last gasp?

Price action reached and pulled-back from the (magenta arrow) channel high. That upward move was launched from an earnings release.

Now, we have two ‘bookends’ of upward thrust but here’s the key; markets tend to alternate.

That means: ‘What happened last time is not likely to happen this time’; Prechter’s rule of alternation.

The SOXX index itself plays a role as it had an ‘outside-down’ print on Friday; otherwise known as ‘key reversal’ or ‘bearish engulfing candle.’ (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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