Chart of the day

Where do we stand fundamentally?

NVIDIA (NVDA) released its Q3 FY25 earnings report on November 20, 2024, showcasing impressive results:

• Revenue: A record $35.1 billion, reflecting a 17% increase from the previous quarter and a 94% year-over-year growth.

• Data Center Revenue: $30.8 billion, marking a 112% year-over-year growth and a 17% sequential rise.

• These numbers emphasize NVIDIA's dominance in AI-related hardware and data center technologies, contributing significantly to its revenue growth.

This is the third report that has led to a downside reaction of the NVDA stock.

NVDA is testing a rising wedge 141 downside resistance in the third long-term upside wave and we could see a pullback in the fourth wave from here. We need to see a breakout above this level for an extended third wave. I expect a deeper pullback here in the fourth wave of the five long-term waves for a retest of the 116 and possibly lower.

We are in the development of the fourth wave short-term before a rally higher in the fifth long-term wave. Before an extension higher we could see a pullback from here in the short term if we get a break below 140. Invalidation of a swing lower will happen upon a confirmed break above 150.

_{Try a short trade entry with a stop loss above 145 to target 120 and lower or trade it with options like in the example below. This options trade was published yesterday in my options trading discord.}