DON'T BUY NVIDIA (NVDA) Until It Hits THIS PRICE! (Price Details in Video)

Introduction

Introduction

Chris Johnson from Monday Morning discusses the recent performance of Nvidia (NVDA) stock, which is down 10% despite a better-than-expected earnings report. In this article, we will explore the reasons behind the stock's downward trajectory, highlight essential price points to watch, and identify potential long-term buying opportunities.

The Current Situation with Nvidia

Nvidia's recent earnings report showcased strong revenue and earnings per share, yet the stock has not responded positively. The primary issue is not the earnings themselves but the high expectations investors had leading up to the report. Amid market volatility and rising expectations, Nvidia struggled to deliver surprises significant enough to appease investors.

Investor Sentiment and Market Dynamics

The emotional state of the market is currently driving Nvidia's stock lower. As investor sentiment fluctuates between euphoria and fear, stock prices tend to react in unpredictable ways. When the market experiences euphoria, it may lead to complacency, and ultimately, retraction when expectations are unmet. The market has been particularly volatile in September, historically the worst month for stock performance.

Technical Analysis and Key Price Levels

Using technical analysis, Johnson identifies critical price levels to monitor for Nvidia. The following points are essential:

• $ 140: Previous top and an indication of where the stock was priced for perfection.
• $ 120: Served as initial support, which has since been breached.
• $ 100: This psychological level is crucial as it serves as both a support and resistance point. There is significant options activity surrounding this price.
• $ 80: Johnson recommends considering this price as a potential long-term buying opportunity, suggesting that it remains within reach given the current market volatility.

Upcoming Events and Market Considerations

With critical data on the horizon, including a jobs report and a Fed announcement, investor sentiment may swing. September's volatility combined with the looming economic indicators could further impact Nvidia’s performance.

Overall, the best approach is to be cautious and consider setting limit orders, particularly around the $ 80 level.

Keywords

Nvidia, NVDA, earnings report, stock performance, market volatility, investor sentiment, psychological levels, technical analysis, support, resistance, buying opportunity.

FAQ

1. Why is Nvidia's stock down despite strong earnings?

• Nvidia's stock is responding to high investor expectations that were set prior to the earnings report, leading to disappointment.

2. What key price levels should I watch for Nvidia?

• The key levels to monitor include $ 100 (psychological support) and $ 80 (long-term buying opportunity).

3. Why is September historically bad for stock performance?

• September has historically been the worst performing month for the S&P 500, which may impact stocks like Nvidia.

4. How can market sentiment affect stock prices?

• Positive market sentiment may drive prices up due to euphoria, while negative sentiment can lead to quick sell-offs and falling stock prices.

5. What should I do if I want to invest in Nvidia?

• Consider waiting until the stock reaches $ 80 based on current market dynamics and set limit orders to avoid emotional trading.