NVDA - extremely oversold - target $210-$240 on the rebound

21 нояб. 2018 г.

NVDA is extremely oversold. More so than any other time in the history of the company. We just cut 50% off it's value in 30 days. We're registering RSI of 16 on the daily and 22 on the weekly. We're forming a weekly higher low and all signs point to sellers being exhausted. For context I am bearish on the macro trend of the market over the next 1-2 years but in the short term in tech which has lost over 1 Trillion in value in just the last 45 days I expect to see a significant relief rally. Personally I don't think we'll hit new ATH's but the indicators and momentum will need to reset at some point very soon. So expect some violently bullish behavior from NVDA, FAANG and others that have been absolutely hammered on the sell side lately. We could very easily see a 3-4 week rally from NVDA from this spot. As they say...long support and short resistance...well we shorted it on the way down...exited that position yesterday and are now longing this weekly resistance with a target of $210 and then $240. From there we will re-evaluate the macro environment and determine what the most prudent course of action is.