Nvidia Price Forecast – Nvidia Continues to Percolate

Christopher Lewis
Updated: Feb 27, 2024, 14:19 GMT+00:00

Nvidia has been very bullish for some time, and in fact at this point in time, is up 75% since New Year’s Day. In other words, it’s a bubble just waiting to burst, or at the very least a stock that desperately need to pull back. Yes, I recognize that AI is going to change the world, but sooner or later gravity gets involved.

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NVIDIA Technical Analysis

I would say this is a market that is likely to continue to see some sort of downward pressure, at least in the short term. However, I don’t think this is a market where you’re anywhere near being able to short. I mean, it would take a truly brave person to do it, but I do have some areas that I think we might revisit. $740 is a very likely possibility. I don’t think that buying this market at this point in time is even remotely possible.

It is just so overbought that it is ridiculous, really. I mean, we’re up about 75% in the first two months of the year. What that means is if we retrace half of this move, we’re still up 35%, which is a great year for any stock. Now, I understand that Nvidia is the face of AI, et cetera, et cetera, but at the end of the day, that doesn’t matter. What matters is that sooner or later, the mania dies.

And think of it as the actual game that’s being played in the stock market. Wall Street buys at a low price, sells it to you at a high price, keeps the profit. It has nothing to do with the company. And when they get these manias going, there’s a lot of money to be made by saying, here, hold my bags. And that’s exactly what’s going to happen here. Now, that doesn’t mean that Nvidia won’t go higher, and it doesn’t mean that it won’t go higher over the longer term.

But these types of manias almost always see some type of massive pullback. About the time that people stopped talking about Nvidia stock, and we pulled back 50%, that’s when you want to buy. At this point in time, you’re just chasing the trade. Yes, we could go straight up again, but let me put it this way, if you were to buy something, like a television set, and it is now 75% more than it was just a few months ago, do you feel like you’re getting a bargain? Because for some reason, people do think about that with stock. It’s the same thing. You’re just chasing the trade. You can’t buy up here.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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