NVDA - Playing (with?) the crowd
Updated
Besides all the crazy news, I don't believe this company what they say. IMO they just play with the crowd and make nice gains from the News they spread via the media.
That's just my opinion, and I'm maybe wrong.
But what about the information we can gather from the chart?
I have hidden the huge GAP so that we can focus on the last weeks and days.
There is a big bounce from the top that to me looks like a Flag, steering in my face. Bulls would argue that is a huge Long signal, right? OK, so be it...
But what do my eyes see that makes me wake up at night?
Price broke out of this Flag/bounce and within one single bar it was able to reach the Center line. This is not the norm, it's not natural.
Second, watch the volume in bar 1 and 2.
Should volume not explode if such a breakout is real?
Well, it was not real in my trading world.
The Market Maker just opened price higher, that's it.
No real buyers there, just another GAP to push the price of NVDA higher. Maybe someone will appreciate this and unload it's stock? Hmmm...
And where did it stopped?
Right at the CL. As I always say: You can fake it, but you can't hide. §8-)
My current conclusion?
1. NVDAs price is way too high. The company is not worth the current price.
2. Volume does not confirm higher price. It was made artificially by open higher and push it upwards.
3. The Center line is reached. Price found it's current balance.
So, should we short it?
Absolutely NOT!
Without any clear indications after earnings, I don't touch this bad Boy §8-)
I just watch this movie and learn...
That's just my opinion, and I'm maybe wrong.
But what about the information we can gather from the chart?
I have hidden the huge GAP so that we can focus on the last weeks and days.
There is a big bounce from the top that to me looks like a Flag, steering in my face. Bulls would argue that is a huge Long signal, right? OK, so be it...
But what do my eyes see that makes me wake up at night?
Price broke out of this Flag/bounce and within one single bar it was able to reach the Center line. This is not the norm, it's not natural.
Second, watch the volume in bar 1 and 2.
Should volume not explode if such a breakout is real?
Well, it was not real in my trading world.
The Market Maker just opened price higher, that's it.
No real buyers there, just another GAP to push the price of NVDA higher. Maybe someone will appreciate this and unload it's stock? Hmmm...
And where did it stopped?
Right at the CL. As I always say: You can fake it, but you can't hide. §8-)
My current conclusion?
1. NVDAs price is way too high. The company is not worth the current price.
2. Volume does not confirm higher price. It was made artificially by open higher and push it upwards.
3. The Center line is reached. Price found it's current balance.
So, should we short it?
Absolutely NOT!
Without any clear indications after earnings, I don't touch this bad Boy §8-)
I just watch this movie and learn...
Note
This Blow-Off Top is my short signal.Not all in, but a Short.
Note
And by the way: It played out exactly how my Tinfoil said.The Market Maker is playing with folks and cashes in big by all the Options Gamblers.
Just stay out or play it small.
Note
Down we go!
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