Chart of the day

NIVIDIA is testing a strong upside support of the fourth wave consolidation before a fifth wave higher of the long-term fifth wave. A bounce here and a break above 440 is needed to confirm this scenario.

This is still viewed as the fourth wave pullback of the recent five upside waves and consolidation could come to an end if we see a test and a break above 440. If we get a confirmed break below 405 an upside reversal can be invalidated and we could see a deeper pullback and a test of an important 347 downside resistance instead of an immediate continuation.

Long trade, you can open here with the stops below 400 and you can buy the call options. We favor the long trade entries as we expect an upside extension in the fifth wave. If we see a confirmed break below 405 we could revert to a short swing trade.