I Called NVDA Stock's Big Drop Near $100 and Here's What I See Next

NVDA stock has been in a strong uptrend as seen in the weekly chart, with the price recently breaking out above historical resistance levels. According to the latest data, NVDA is trading at $1,148.25, with a recent high of $1,154.92.

In October 2022, when most market participants were scared and calling for further crashes, my analysis and opinion was to buy the dip with a specific trading plan to buy NVDA stock as it was between $107 and $121.00.

This is what I see now. Spoiler: this will be a healthy correction of profit takers, not a crash. But this correction could even bring the stock price back to just under $1,000… For that and where to buy, if so, you'll need to follow ForexLive.com to track price action at come. There is no perfect success rate and I would happily maintain 60-80% on trading plans, especially when most offer reward versus risk of a minimum of 2 to 1, typically.

NVDA Technical Analysis

1. Continuity of the upward trend for Nvidia stock: The long-term trend, as observed on the weekly chart, shows a steady upward trajectory. The support line drawn from the lows of previous years underlines strong bullish momentum.

2. Resistance to monitor: Although the price is approaching a psychological resistance level at $1,200, the strength of the uptrend suggests that there is potential to break this resistance. However, such breakouts often result in profit-taking, which could lead to a pullback.

3. Indications for taking profits: The daily chart highlights the past few days with modest gains, suggesting momentum is slowing as it approaches the $1,200 level. The “Partial Profit Takers” label indicates that traders who have accumulated large gains might start selling part of their positions to lock in their profits. This is a common strategy to reduce exposure and manage risk, particularly after a strong run-up.

NVDA Price Forecast

• Short term: In the short term, expect volatility as the price approaches the $1,200 level. There is a greater than 50% chance that partial profit takers will emerge, which could lead to a price retraction or consolidation.. This should not be considered a major trend reversal, but rather a normal market reaction to a significant price milestone. Where can it go… Follow ForexLive.com in the future for updates based on Nvidia stock price action.

• Medium to long term: If the $1,200 resistance is tested and successfully breached, the next set of targets could be significantly higher, given the company's strong market position and technological advancements. However, if $1,200 holds, expect a sideways move or a slight pullback as the market reassesses its position.

Investment strategy

• For long-term investors: Stay the course, but be prepared for possible short-term declines caused by profit-taking. These could represent buying opportunities for those looking to increase their exposure. After the 10 to 1 split, this baby can also reach 200 USD in the next 2 years IMO… It's not an exaggeration because AI is not a hype and it's a real revolution that is just beginning to be a game. productivity change for the market, industries and individuals. Nvidia is clearly the winner of this revolution at this phase of the cycle.

• For traders: Keep an eye on volume and price action near the $1,200 level for signs of a reversal or continuation. Setting stop losses just below recent support levels could help mitigate risks associated with a potential pullback.

Conclusion for the current technical analysis and price forecast of NVDA stock – This darling of all darlings remains in a strong position with upside potential above $1,200, but the near-term stop and decline could be large enough to mitigate risk. Traders and investors should be wary of possible profit-taking around this level, which could temporarily influence price dynamics. If you are in a profitable long position, I think it is legitimate to take 25%, at your discretion, off the table, then be patient and buy back the next potential dip.. This analysis does not suggest a major trend reversal, but rather typical market fluctuations within a major uptrend. Invest or trade NVDA stock at your own risk only and visit ForexLive.com for additional views.