A stock trading expert has outlined Nvidia’s (NASDAQ: NVDA) price trajectory in the coming months, projecting its path toward the $140 mark.
In an X post on August 13, analyst Peter DiCarlo pointed out that the semiconductor giant’s recent market movements align with anticipated trends, showing a noteworthy bounce off a crucial support level at $94.
He acknowledged that the ability to end the August 12 trading session with gains of 4% is a positive sign that fits within the expected market behavior.
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DiCarlo emphasized the stock’s recent behavior, noting that while Nvidia could see a temporary high between $115 and $120 in the coming week, he predicts another sell-off back to approximately $95.
Nvidia to form lower highs
His analysis highlights Nvidia’s current position under the market bias indicator, a red tape-like line denoting a downtrend. This trend suggests that Nvidia’s stock will likely push up, form lower highs, and sell off again, continuing this cycle until a reversal occurs.
DiCarlo explained that although the market is currently in a contraction phase, a broader perspective reveals Nvidia’s sustained uptrend over a longer timeframe. Using a horizontal draw tool, the analyst marked the recent high at $140 and a low at $76 and employed a Fibonacci retracement from these points to illustrate the current market structure.
This analysis also focused on the institutional level, specifically between the 0.786 and 0.618 levels, where significant buying typically occurs in long-term uptrends.
Overall, DiCarlo remained optimistic about the artificial intelligence (AI) stock’s medium-term prospects, forecasting that the equity could trade between $128 and $140 in the next few months. However, he warned of potential short-term rejections back to $92, suggesting traders remain vigilant and strategic in their positions.
“I still think that we’re going to see Nvidia back in the next couple of months, trading between $128, $132, and $140, but I wouldn’t put us past us in the short term to make one more rejection back down to $92,” he said.
Nvidia’s entry points
DiCarlo also identified the smart money level between 0.786 and 0.826 for optimal entry points, where institutional buying is most likely. He predicted that when the chipmaker’s price reaches this level, it will likely experience a quick buy-up, although not necessarily a straight rise back to previous highs.
Instead, the expert anticipated another push-up followed by rejection, possibly testing the smart money level again between $90 and $87 before confirming a floor and resuming an upward trend.
At the same time, he also discussed his trading strategy in the short term, stating he is not currently opening any put positions unless Nvidia reaches the upper limit of $116 to $117.50.
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