Recent Update:
- After entering a long position as previously posted, it quickly hit the stop loss—something we anticipated might happen, given the market conditions.
- The confirmation has now come in, providing a clearer view of what’s likely next for Nvidia with high probability.
Wave Count Explanation:
- The recent upward movement was likely a dead cat bounce or a B wave within a larger corrective structure.
- With an 80% probability, we now expect Nvidia to form another lower low, continuing the larger ABC correction pattern.
Bigger Picture:
- Despite this, the overall outlook remains the same: Nvidia is still within a larger Wave 4 correction in the bigger picture.
Fibonacci Levels:
- Key Fibonacci levels have been marked on the chart where we anticipate a potential reversal could occur. These levels will be crucial for watching potential buying opportunities.
Short-Term Outlook:
- On the lower time frame, we expect the market to enter a Wave 2, which could push prices back up temporarily before the final leg down completes the correction.
Conclusion:
- While our initial long position was stopped out, the market structure has now confirmed the ongoing ABC correction, with a high probability of forming another lower low.
- Wave 2 is expected to lift prices temporarily before the downward movement resumes.
- Key Fibonacci levels offer a good gauge for when a reversal might take place.
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