NVDA NVIDIA Daily Chart; H&S (Head and Shoulders) Pattern

Here is another NVIDIA chart to supplement the prior chart. A textbook H&S (head and shoulders) pattern, so far.

The 132 is the neckline with the head at 150 to keep the math easy. Price came down to the neck on Friday, testing support, dipping its toe into that negativity, and then deciding to park at 134 to think things over on the weekend. Well, the weekend is over and it is time to sh*t or get off the pot. NVDA must bounce, or die, from 132, and it determines the fate of the artificial intelligence (AI) chip superstar going forward.

The difference between the head and neck, 150 and 132, is 18 points. NVIDIA is down more than -10% off the top in correction territory. Thus, mathematicians say thus a lot, that is why we are never invited to parties, the downside target is 114 (132-18) if the 132 neckline gives way.

There are three gap fills needed down below (orange circles). If Emperor Jensen waves another new AI chip in the air this week, that is actually a Cheerio's box spray-painted black, the stock may want to bounce off the neckline and fill the gap above at 140-ish before it then rolls over and dies.

If you are long NVDA stock, and you see 132 fail, you will pucker your buttocks. If you are a pretty darling, and the head and shoulders spanks you, do not worry. You can Put Your Head On My Shoulder. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Monday Evening, 12/16/24: NVDA drops to 130 and decides to sit at 132.00 overnight. Of course it does. NVDA sits on the 132 neckline deciding to bounce or die. NVIDIA sings O Death hoping to avoid the icy hand for another day, trying to jump higher off the 132 neckline knowing that if it fails, and loses 132, it will clutch its chest and collapse to 114.

Note Added Christmas Eve, 12/24/24: NVDA drops to 126.86 and then mounts a come-back rally as traders are anxious to buy the dip. NVDA sits at 139.67 with the 50-day MA S/R at 139.71. What time is it? Of course, it is bounce or die time. The 20-wk MA is at 131.40. The 20-day MA is at 136.96. Looks like the 137-140 line in the sand is important with price sitting inside this range deciding which way to go. If 137 fails, she is likely going down to 131.40 in quick order. Bulls will celebrate the holidays bragging about their NVIDIA stock if price moves above 140 and remains above. If you bring up a weekly chart, you can see that the MACD line, stochastics and money flow are all weak and bleak wanting to see lower lows on the weekly basis going forward. This hints that shorting the rallies will prove beneficial over the next few weeks. Keystone is not holding any NVDA stock long or short right now but if entering, it would be on the short side. The 2-hour and daily charts have a bit more gusto so NVDA may want to remain buoyant and in happy mode into the first of the year when the hammer would be expected to fall to satisfy the weak and negative weekly chart.

Note Added Christmas Day, 12/25/24: NVDA is at 140.22 continuing to decide to bounce or die. Emperor Jensen is opening his Christmas gift and knows that inside is either a lump of coal (price dies) or a brand new AI chip that does not overheat (price bounces). Rip. The wrapping paper is removed and Jensen's eyes are a big as saucers. Look at that! Grandma Got Run Over by a Reindeer.

Note Added Friday, 12/27/24, at 4:30 PM EST: The session ends the day and week with NVDA at 137.01. The 20-day MA support is 137 and the 50-day MA resistance is 140 so the exit from this 137-140 range tells you who wins. The all-time record high is 152.88 on 11/21/24. Emperor Jensen is worried about his overhyped, overheating AI chips and looks for comfort food to ease his stress but all that is available is fruit cake, that looks like it is a few years old.