$NVDA Elliott Wave Update Aug 7 — Wave 2 in progress
### $NVDA Elliott Wave Update Aug 7 — Wave 2 in Progress
NVIDIA ($NVDA) has been exhibiting classic Elliott Wave behavior, making significant moves off its recent lows. Understanding these patterns is crucial for predicting future price actions and identifying optimal entry points for traders and investors.
#### Recent Wave Movements
1. **Wave 1 Rally**:
— After hitting a low of 91, NVDA embarked on a robust Wave 1 rally, surging to a high of 109. This initial wave reflects strong buying interest and a positive sentiment surrounding the stock, possibly driven by favorable news or earnings reports.
2. **Wave 2 Correction**:
— Currently, NVDA is undergoing a Wave 2 correction. Corrections typically retrace a significant portion of the preceding impulse wave. In this case, the correction is expected to find support at the .618 Fibonacci retracement level, which is around 98.
— The .618 retracement is a crucial level in Elliott Wave theory, often acting as a strong support during corrective phases. Holding this level is vital for the continuation of the bullish trend.
#### Key Levels to Watch
For NVDA to resume its upward trajectory and confirm the start of Wave 3, it must navigate through several critical price points:
1. **Support at 98**:
— NVDA needs to hold the 98 level, which corresponds to the .618 Fibonacci retracement of the Wave 1 rally. This level is significant as it indicates strong underlying support and the potential for the correction to conclude.
2. **Resistance at 106**:
— To set up for Wave 3, NVDA must break above the 106 level. This resistance marks the previous high within the corrective wave and serves as a crucial hurdle for confirming the end of Wave 2 and the beginning of Wave 3.
#### Wave 3 Projections
Assuming NVDA can hold the 98 support and break above the 106 resistance, it would set the stage for a powerful Wave 3. According to Elliott Wave theory, Wave 3 is typically the most extended and dynamic of the impulse waves, often reaching 1.618 times the length of Wave 1.
1. **Potential Targets for Wave 3**:
— Based on the length of Wave 1 (91 to 109), the projected target for Wave 3 could be as high as 125 to 130. This projection is derived from the 1.618 Fibonacci extension, a common target in Wave 3 scenarios.
#### Market Sentiment and Implications
The market sentiment around NVDA remains cautiously optimistic. The recent Wave 1 rally indicates strong bullish momentum, but the current correction phase requires careful monitoring. Holding the 98 support level is critical for maintaining the bullish outlook, while breaking above 106 would confirm the continuation of the upward trend.
The broader market environment, including factors such as sector performance, overall market trends, and specific news related to NVIDIA, will also play a role in shaping the stock’s trajectory. Investors and traders should keep a close eye on these developments, along with the key technical levels outlined above.
#### Conclusion
NVDA is at a pivotal juncture in its Elliott Wave cycle. The Wave 2 correction is in progress, with crucial support at the .618 Fibonacci retracement level of 98. For a bullish continuation, NVDA must hold this support and break above the 106 resistance, setting the stage for a potential Wave 3 rally targeting 125 to 130.
Monitoring these key levels and market sentiment will be essential for navigating NVDA’s price movements in the coming days. The next few trading sessions will likely provide critical insights into whether the bullish scenario unfolds as anticipated.
