Based on your charts, NVIDIA appears to be in the extended third wave of a larger Elliott Wave cycle. However, the charts and wave counts suggest that the stock is nearing the end of the fifth subwave (5 of 5) within this third wave. This analysis highlights both short-term corrective movements and long-term bullish potential.
Long-Term Structure
NVIDIA is currently positioned in the overarching Wave 3, specifically at the end of Wave 5 of Wave 3. This indicates a mature bullish trend that has shown significant momentum and extension.
Current Position
We can observe:
- A completed Wave 4 that has found its bottom
- A corrective rise that could represent either:
- Wave 1 of an ending diagonal (primary scenario)
- B-Wave of an extended Wave 4 (alternative scenario)
Key Fibonacci Retracement Levels
Critical support levels for the potential Wave 2 are:
- 0.5 Retracement: $117.84
- 0.618 Retracement: $110.63
- 0.786 Retracement: $101.12
Technical Outlook
The formation suggests we’re more likely entering Wave 2 rather than Wave C of the correction. The ending diagonal scenario appears more probable based on the current price structure and momentum indicators.Trading Channel
The price has broken below the ascending channel that contained the previous upward movement, suggesting increased probability of further downside movement in the short term.