$NVDA has been one of the most favorable stocks for a long time. The spectacular run from April – June 2017 has been absolutely breathtaking. Now it’s over extended and it’s about to take a break! It doesn’t matter what the reasons are, the chart is telling us $NVDA is overextended and it is due for a 20-40% correction that will last 4-6 months.
It has been 12 weeks since the April 95.49 low. It took out the June low @142.11 and closed below it on a low volume trading day on July 3rd. This is indicative that the top @ 168.50 is in. The 50-day moving average is providing support so it has a low volume bounce on 07/05/2017. Being 12 weeks into the weekly cycle, it is right in the top timing band. So the price action is in sync with the timing band to point to 168.50 being the top for the time being.
Because $NVDA is still technically in bullish territory, we suspect the bullish momentum will take time to dissipate. So we are expecting sideways correction for at least 4 months. During the sideways correction, it is entirely possible for $NVDA to make a slightly higher high before a fast selloff takes place. So the best course of action for now is to leave $NVDA alone and wait for it to develop a short trade sometime in October 2017.