NVDA - Never regret taking profits !1) Everyone and their granny has heard of Nvdia by now.
Lots of new retail traders are pulling into this name as the craze continues.
My none-trader/investor friends have started asking if it's a good idea to "invest" now. That's a big red flag ! (My answer is no!)
Remember, retail investors always come in last and hold the bags when the stock sells off.
2) Fundamentals have started to degrade across the board in the US markets and lots of names started to go lower. Small caps are incapable of making a new high and have made what seems to be a corrective move up since April.
It's then a matter of time before the king follows.
3) Looking at the Elliott Wave count, we can clearly see that we're in a fifth wave, which for those that do not know, is the final move up before we see a considerable correction.
RSI, MACD (or your fav oscillator) shows divergence which happens between wave 3 and 5.
4) On the smaller time frame, we can hope for a continuation higher, but, the upside is limited to probably less than +20% seen that we've finished (are finishing) the extended third of a third wave, which is the sharpest and longest.
So, It's not a bad idea to start taking profits.
I'll close 75% of my longs now.
The rest on a drop below 1070$ or a move close to 1300$