NVDA STOCK BEGINS MAJOR DRAWDOWN - ELLIOTT WAVE SCIENCE
Throughout the past 2 decades (22 years), NVIDIA has made impressive runs, increasing its share value by 822% over that timeframe. With 5 overlapping and continually extending waves being complete, the beginning of the 3 wave breakdown is already underway. From November 2021 until October 2022, this major market player experienced a 69% ($242) drawdown for what will likely prove to be Wave A of the 3 wave correction (3 wave corrections are labeled as ABC in Elliott Wave Science).
With A wave trending downwards, we can expect B wave to go against the direction of A wave, usually by 38-79% (in the form of another smaller, 3 wave move). This B wave corrective move is in motion at this very moment. (Knowing that B wave is a 3 swing move), considering the strength of its first (A) wave, it seems unlikely that a 38% retracement will satisfy the need for this form. Buyers are still adamant that the stock can see a higher price in the months ahead. The true test of this sentiment may come near $221 or $272.
Should the bulls fail to ascend above $221 and/or $272 and convert it into a supportive zone, price action suggests that the share value of this company will plummet. Within a 3 wave correction, specifically a 5-3-5 zig-zag type wave, we can expect the length of Wave's A and C to lean towards equality, its also fairly common for C wave to become slightly longer the length of Wave (by 1.618%). The main catalyst for NVDIA's market structure (being the 5 wave overlapping diagonal move seen in orange) suggests that its highly common for the correctional move/retracement to return down to the 0.618 fib level. The fibonacci tool shows that this level would equate to roughly $5.06.
The timing of Wave A within Wave 2 took approximately 11 months. We can expect a similar timeframe or slightly longer for the completion of Wave C. Wave C should be at least $242 in length but indications are that it will likely be longer.
There is good chance that NVDA drops below $10/share before/during the 2025 calendar year. This timing depends on how long the B wave correction takes to reach the final upside battle-zone.
With A wave trending downwards, we can expect B wave to go against the direction of A wave, usually by 38-79% (in the form of another smaller, 3 wave move). This B wave corrective move is in motion at this very moment. (Knowing that B wave is a 3 swing move), considering the strength of its first (A) wave, it seems unlikely that a 38% retracement will satisfy the need for this form. Buyers are still adamant that the stock can see a higher price in the months ahead. The true test of this sentiment may come near $221 or $272.
Should the bulls fail to ascend above $221 and/or $272 and convert it into a supportive zone, price action suggests that the share value of this company will plummet. Within a 3 wave correction, specifically a 5-3-5 zig-zag type wave, we can expect the length of Wave's A and C to lean towards equality, its also fairly common for C wave to become slightly longer the length of Wave (by 1.618%). The main catalyst for NVDIA's market structure (being the 5 wave overlapping diagonal move seen in orange) suggests that its highly common for the correctional move/retracement to return down to the 0.618 fib level. The fibonacci tool shows that this level would equate to roughly $5.06.
The timing of Wave A within Wave 2 took approximately 11 months. We can expect a similar timeframe or slightly longer for the completion of Wave C. Wave C should be at least $242 in length but indications are that it will likely be longer.
There is good chance that NVDA drops below $10/share before/during the 2025 calendar year. This timing depends on how long the B wave correction takes to reach the final upside battle-zone.
Sharing chart analytics to build the world's most profitable investor community. Free to join below! 0 strings attached.
🏄 www.discord.gg/QRPx6ShxMt
🏄 www.discord.gg/QRPx6ShxMt