$NVDA Elliott Wave Short Term BOTTOM Update
## NVDA Elliott Wave Update: July 30, 2024
NVIDIA Corporation (NVDA) has recently been navigating through a classic Elliott wave pattern, which has captured the attention of traders and investors alike. As of July 30, 2024, the stock appears to be completing a zigzag correction, a common corrective wave structure in Elliott Wave Theory. Understanding the current movements within this framework can provide valuable insights into potential future price action.
### Wave Structure Analysis
The zigzag correction in NVDA began approximately a month ago and is characterized by three distinct waves labeled A, B, and C. Each of these waves represents different phases of the correction process:
1. **Wave A**: The initial phase of the correction saw NVDA drop sharply from around 141 to 117. This decline marked the end of a preceding bullish impulse and the beginning of the corrective phase. Wave A is typically a sharp, downward move that sets the tone for the subsequent waves.
2. **Wave B**: Following the decline in Wave A, NVDA experienced a counter-trend rally from 117 to 137. This upward movement constituted the B wave, a corrective wave that retraces a portion of the decline seen in Wave A. B waves are often characterized by a temporary optimism in the market, where investors believe the correction may be over.
3. **Wave C**: The most recent phase, Wave C, has been unfolding with a decline from the 137 level, bringing NVDA down towards the 105–107 range. Wave C is typically an impulsive wave, similar in structure to Wave A, and often completes the zigzag correction pattern. In this context, the C wave represents a final sell-off, bringing the market to a new low.
### Current Market Position and Outlook
As of now, NVDA appears to be in the final stages of the C wave, specifically within the fifth and final sub-wave (often referred to as “5 of 5”). This phase is crucial as it usually signals the completion of the corrective structure. The anticipated target range for the end of this wave is between 102 and 106, where the stock is expected to find a bottom.
Technical indicators and wave analysis suggest that once NVDA reaches this target range, it may begin to form a base, potentially setting the stage for a new bullish impulse wave. However, it is essential for traders to exercise caution and confirm the end of the C wave through additional technical signals, such as volume spikes, bullish divergences, or breakouts from key resistance levels.
### Conclusion
The Elliott wave analysis of NVDA as of July 30, 2024, indicates that the stock is nearing the end of a zigzag correction pattern, with the final leg, Wave C, expected to bottom out in the 102–106 range. Investors and traders should monitor the stock closely for signs of a reversal or consolidation, as these could signal the end of the corrective phase and the beginning of a new upward trend. As always, it is crucial to combine Elliott wave analysis with other technical and fundamental factors to make well-informed trading decisions.
