Nvidia’s recent Elliott Wave analysis shows a leading diagonal pattern starting from the low on September 18. The first wave peaked at $184.55, followed by a pullback to $173.12. The stock then climbed to $191.05 before experiencing another pullback in a zigzag pattern, hitting key levels of $185.38 and $182.88. Wave ((v)) started at $187.23, followed by a pullback to $184. We expect further upward movement, though another correction is possible if the support at $173.12 holds. Upside momentum might build, especially if it finds support at 3, 7, or 11 swings.

Speculative Analysis

The Elliott Wave analysis is speculative and for informational use only. It’s important to do thorough research before making financial decisions. There are risks involved in open markets, including potential losses. This content does not provide financial advice and may not be completely accurate or comprehensive. The technical analysis for Nvidia suggests we are in the final leg of an upward trend targeting $193.00. We should expect a short pullback before the stock makes its next big rise. This creates an opportunity to prepare for the anticipated rally in the coming weeks. For traders, the strategy is to buy during the expected pullback. This dip provides a chance to enter before the final move toward our target. As long as the crucial support level of $173.12 from the September low holds, buyers are likely to step in.

Options and Market Outlook

Selling out-of-the-money put spreads is an appealing strategy right now. By setting the short strike below the recent low of $184, we can earn a premium and have some protection. This trade can be profitable if NVDA moves up, stays flat, or even dips a little, as long as it remains above our chosen level. This optimistic view on Nvidia matches the recent positive sentiment in the broader market. The latest September CPI data showed a slightly cooler rate of 3.9%, raising hopes that the Fed may ease its hawkish approach in the upcoming speech. Strong demand for Nvidia’s new AI chipsets, which helped the company exceed last quarter’s earnings estimates by 12%, reinforces the upward trend. We’ve seen similar setups before, especially leading up to significant product announcements in 2023 and 2024. During those times, brief pullbacks often led to major rallies. This history gives us confidence that the current dip is a buying opportunity, not a reversal. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now