Nvidia (NVDA) DROPPED 15%! DO NOT Buy the Dip Until You See THIS!

Chris Johnson analyzes Nvidia's recent 15% dip, discusses historical trends showing an average 16% recovery, and outlines key price levels ($120, $100, $80) for potential buying opportunities.

Detailed Summary

- Discussion on whether to buy Nvidia stock after a 15% drop}
- Importance of understanding Nvidia stock movement for investors}
- Explanation of why Nvidia is considered a risky stock}
- Analyzing reasons behind Nvidia's recent pullback}
- Nvidia's popularity and impact on Wall Street}

- Market volatility can affect Nvidia stock due to high investor interest}
- Market dynamics causing Nvidia stock to react differently than the overall market}
- Analogy of boat imbalance to explain Nvidia stock volatility}
- History of Nvidia experiencing 15% pullbacks multiple times since 2024}
- Variability in Nvidia stock returns based on market conditions}

- Review of past signal on April 19th, showing a 59% increase in stock price since then}
- Statistics on buying the dip, with an average 16% gain over 14 instances}
- Encouragement to buy the dip as stock is expected to rise by 16% over the next 3 months}
- Comparison with 2022 stock performance and identification of key trend lines for analysis}
- Importance of the 200-day moving average in long-term stock analysis}

- Waiting for sentiment shift before buying Nvidia stock}
- Importance of watching the 50-day moving average as a trend indicator}
- Testing the 20-day moving average at the $120 price level}
- Predicting a healthy correction in Nvidia stock}

- Importance of the 50-day moving average in stock analysis}
- Round numbers like $100 as significant support levels}
- Monitoring the crossover of the 20-day moving average for negative momentum}
- Significance of the 200-day moving average in determining trend direction}

- Discussion on the popularity of NVDA stock on Wall Street}
- Potential rotation in buying at $80 level and 200-day moving average}
- Importance of staying above the 200-day moving average for long-term investment}
- Short-term support at Nvidia's 20-day moving average}
- Anticipation of heavy buying below $100 level}

[jeffrose]

Those that have made a fortune with NVIDIA have bought and held, not day traded.

[tracyellis]

Average @ about $86. 4200 shares. Up around 500 %. Buy and HOLD.

[bernardallen]

Is NVIDIA a safe buy to outperform the market this year? I'm tired of these new buys every week, just to make up some assets with low percentage on my $136k portfolio and try to keep everything around 10%.

[crystalk]

Sorry went back up 6.7% with volume of over 400m today

[capos]

After the split my average cost basis is 29.50

[DeadRingerMachine]

Nvidia is a very different company now than it was in 2022. You speak like a day trader who looks at nothing but stock price charts instead of an investor who looks at the company. Nvidia is THE DOMINANT AI chip maker, nothing is changing that fact in the next 6 months plus. Comparing their stock performance to what was happening in 2022 is an effort in futility. They weren't dominating their competition back then, they weren't DOUBLING their revenue year over year. You might want to take a look at the numbers the company is posting TODAY as opposed to the historical stock chart. Because while it's POSSIBLE this stock dips below 100 at some point in the future in a Cisco-style swan dive once all the AI data centers are built out, it's not happening any time soon.

[kyoung]

All depends on earnings and guidance, the most important factor in a company stock.

[Aesahaetr]

The next fib level down is $115. If it breaks that level, $105 is the next fib level down.

[arifualtaye-ew]

If the stock market falls, there are several ways to make a profit, namely put options, which means buying the stock, selling it at a lower price, and then recovering it without exiting the market.

[P_Belle]

The best technical analysis I've seen! How do we assess resistance on the way up?

[BenJune]

Earned a new subscriber…thanks for the clear info on NVDA!

[voniomalie]

If I just hold it for 15 years is that matter the volatile right now because in 15 years from now the price will increase.

[SarkisKlinik]

I bought 123 $ 60 pieces Nvidia, Now I am down. What should I do ? Should I keep it or sell it ? what is the lowest point could not go more down ? when could improvement happen? Should I hold it for its earnings report? Thanks

[PainandSorrow]

Timing the market is ridiculous. You make several wrong decisions and it can be the difference between being up 20% on your portfolio or being down 20%. Eventually, the mistakes catch up to you. Much better to do your dd and if you believe in the company, start a position and add during dips.

[johnouellet]

I don’t time the market anymore, but I agree that there will be some downside still

[rossjackson]

It is a semi conductor stock. It is cyclical. It is priced to perfection. One quarter of slower growth and Nvidia will drop signifantly. The company will continue to grow but not at this pace. The big money has been made.

[pierrec]

One compounding factor is that most people have no idea what NVDA is actually producing and even less what the derivative products are.

[Compounding_King]

This was very informative! History repeats itself. Is this a commonality no matter the economic condition? Because economics are cyclical as well…

[melusiburawa]

Hie nice video indeed if you may please talk about 115 level, were there any supports there because everyone in the street was predicting a rebound from this level and the stock surely did bounced back from there

[nightsurfer]

You presented your argument, and then you included year 2022 in your argument. This makes the rest of your argument hard to swallow. In 2022 the whole market went down. Generally speaking, there was no stock to run to and not be down. They all went down. Like the end of 2007 to March 2009, for about 1.5 years of hard downs. There was no place to run to, not even the banks!