NVIDIA’s stock has soared over 60% since April. The recent price correction found support at the Equal Legs zone, also called the Blue Box Area. According to the Elliott Wave analysis, there is a 7-swing pattern with a pullback to a buyers’ zone ranging from 101.78 to 76.16. The correction finished at 83.65, and a rally to new highs was expected. In less than three months, NVIDIA’s stock has risen as predicted, reaching all-time highs. This upward movement started from the Blue Box buying zone after a smart buying decision. Experts suggest holding onto the stock and not selling during any pullbacks due to its strong momentum. It’s important to recognize the risks of trading in the Foreign Exchange market, as it can lead to losing all your initial investment. The expectations in trading recommendations or Elliott Wave analyses don’t guarantee success, and losses can happen. Intellectual property rights protect this content, and unauthorized sharing is prohibited. Trading in the foreign exchange market requires a high level of caution since leverage can increase both profits and losses. Before getting involved, consider your goals, experience, and risk tolerance. We believe the analysis predicting the rally from the Blue Box area was spot on, paving the way for further gains. The stock has confirmed this outlook by reaching new all-time highs with strong momentum. We think this upward trend will continue for a while. This positive technical performance is strengthened by the recent 10-for-1 stock split that occurred on June 10, 2024. Such splits often attract new investors and can keep positive sentiment alive in the following weeks. We view this split as a catalyst for continued growth rather than a peak. For those trading derivatives, buying call options is a straightforward way to take part in the expected rise. Since selling during pullbacks is discouraged, these dips should be seen as chances to start or add to long call positions at better prices. Timing your entries will be critical to maximizing this strategy’s potential. Alternatively, selling out-of-the-money put credit spreads or cash-secured puts can help traders earn premiums while maintaining a bullish outlook. The stock’s strong performance has kept implied volatility high, which is advantageous for options sellers. This strategy can profit from price increases, stable movements, and the passage of time. We are further encouraged by the impressive Q1 earnings reported in May, where NVIDIA achieved $26.04 billion in revenue, far exceeding expectations. This shows that the stock’s rapid rise is supported by solid fundamentals and strong demand for its technology. We see a perfect match between the technical strength and the business reality. Historically, market leaders often experience continued strength after a stock split, and we expect a similar trend. However, the leverage involved in derivatives means traders need to manage their position sizes carefully to handle any short-term price fluctuations. It’s crucial to assess your risk tolerance before using these powerful trading instruments.

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