The Long Investor

$NVDA

Added 2023-08-23 10:42:03 +0000 UTC

Todays the day, report is due after the close today.

And the chart is a mixed bag but the impulse count is the clear count here.

First of all, Wave 3 in Green is valid up to $601 because it extends to the 1.618 Fib, which is taken from using Wave 1 and Wave 3, perfectly valid.

However, this Wave 3 itself is incredibly stretched, by using the same metric as above, Subwave 1 and Subwave 2 pull back was very small and short, so the extension used to find the remaining subwaves are now incredibly stretched....those who follow my commentary closely will know that we have never seen a price action go beyond the 4.618 Fib, infact, the device on trading view, that allows me to draw Fib extensions, does not even have a setting beyond the 4.618 Fib....showing just how extended this whole structure has been all year....but this is a bubble and this is how bubbles behave.

This week $NVDA has bounced very well after falling considerably last week....however, the price has just stopped outside of the ascending channel, which is a bearish formation.

We can also see that the MACD has crossed down and showing a bearish trend, this is on the weekly chart.

$NVDA has a mind of its own however and people really have bought into the hype, including the majority of funds.

The guidance is going to be important later and the one variable is that, will $NVDA have the capacity to deal with all the back orders they have and what are they doing to mitigate this issue?

Building a larger factory makes sense but it also gives other Chip companies a chance to catch up and get their product to where $NVDA's is....this will be important to find out and what the market thinks of it.

Looking at this where it is now is not something I am attracted too.