NVDA to 530? Looks likely

Is it possible for the high flying NVDA to give 36.5% of its current price and fall to $530/share. I believe history says that’s exactly where it is heading. Below are three price charts. The first is from 2018. As you can see after a period of consolidation NVDA breaks out to new highs. Keep an eye on the red point of control line that marks the area of greatest volume over the date range shown on the chart. This POC line has been a magnet for NVDA and as it gets too far above it, it acts like a magnet drawing it back. In 2018 NVDA gave up over 56% of its value as it fell to the POC.

Once again in 2020, NVDA went through a period of consolidation and broke out to new highs leaving its POC in the rear view mirror climbing 43% on light volume. The POC magnet said, “not so fast NVDA” and drew it back once again leading to a 43% pullback.

So here we are today; once again NVDA broke up from a period of consolidation where heavy volume defined the POC at 530ish. NVDA once again broke out to new highs on relatively light volume. The POC is saying “come home again my child, I’m waiting at $530”.

About alphahorn

I received an MBA from Columbia University’s Graduate School of Business in New York and am a Wall Street veteran. I’ve worked for a number of investment banks including Smith Barney and First Boston/C S First Boston in New York. Over the years, I have developed my own Proprietary Swing System and I combine that System with my own Elliott Wave Analysis to trade.
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