Insights 
VT 
Nvidia’s short-term Elliott Wave analysis shows a leading diagonal pattern from the low on September 18, concluding the first wave at $184.55 followed by a pullback to $173.12. The stock continued upward, reaching $191.05 before forming a zigzag pattern in a subsequent pullback, with key levels at $185.38 and $182.88.
Wave ((v)) began with $187.23 and a pullback to $184, with expectations of further upwards movement before another correction. The possibility of a correction exists, provided the $173.12 support holds, suggesting potential support at 3, 7, or 11 swings. This positions Nvidia for additional upward momentum in the future.
Speculative Analysis
The Elliott Wave analysis remains speculative and is designed for informational purposes. The importance of conducting thorough research before financial engagements is stressed, with warnings about potential losses and risks in open markets. The contents don’t offer financial advice or express recommendations, with a disclaimer on potential inaccuracies and completeness within the forecast.
The technical pattern for Nvidia suggests we are in the final leg of an upward move targeting $193.00. We should anticipate a brief pullback before the stock makes its next significant push higher. This presents a specific opportunity to position for the expected rally in the coming weeks.
For those looking to trade this, the strategy is to buy into the expected weakness. This pullback is a chance to enter before the final move toward our target. Any dip should find buyers as long as the critical $173.12 support level from the September low holds firm.
Options and Market Outlook
Selling out-of-the-money put spreads is an attractive strategy in this environment. By setting the short strike below the recent low of $184, we can collect premium while giving ourselves a cushion. This trade benefits if NVDA moves up, sideways, or even dips slightly, as long as it stays above our chosen level.
This bullish outlook on Nvidia aligns with the broader market sentiment, which has improved recently. The latest September CPI data came in slightly cooler than expected at 3.9%, fueling hopes that the Fed may soften its hawkish stance in the upcoming speech. Strong demand for Nvidia’s new AI chipsets, which helped them beat last quarter’s earnings estimates by 12%, provides a strong fundamental reason for this upward trend.
We’ve seen this kind of setup before, particularly in the lead-up to major product announcements back in 2023 and 2024. During those periods, sharp but shallow pullbacks often served as launching pads for the next major rally. This historical precedent gives us confidence that the current dip is a buying opportunity rather than a reversal.
