NVIDIA Corp (NVDA) has been in the news this week after issuing a warning regarding its upcoming quarter. While it's never good to see a stock falling, this latest drop on NVDA sure seems to be more manipulation than anything else.
First of all, the selling is coming at the opening bell each day. There's been very little intraday selling, so I just don't see a lot of distribution. Instead, I believe Wall Street is using the bad news to accumulate. Check out NVDA's chart, which shows a potential bottoming reverse head & shoulders pattern:
Enter NVIDIA Corp. (NVDA):
NVDA closed at 189.89 on Friday. On Tuesday, it closed at 170.86, possibly printing a reverse right shoulder. That's a drop of 19 bucks over two days. Do you know how much NVDA sold off during the trading day? Zero. On a net basis the past two days, NVDA has traded higher by a buck during the trading day. The entire move lower has been via gaps at the opening bell. This sure reeks of manipulation to me. NVDA's AD line is SOARING.
What does this mean?
- While the news is bad and traders are panicking at the opening bell, Wall Street is calmly buying every share that retail traders are willing to sell.
- Time will tell, but I believe NVDA is setting up for a HUGE move higher later this year and into 2023.
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Happy Trading!Tom BowleyChief Market StrategistEarningsBeats.comBetter Timing. Better Trades. |