Nvidia Low Time Frame Analysis

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.