Eye On NVDA After Unveiling New Chip Technology

Good Tuesday Morning, MPTraders!  March 19, 2024-- Pre-Market Update: NVDA CEO Jensen Huang unveils new chip technology, but the stock fails to react on the upside with the anticipated FOMO response... Tomorrow is Fed Day, with Jay Powell on the hot seat once again... The Japanese markets have been unshackled after 17 years of BOJ interference and manipulation. BOJ abandons Yield Curve Controls (YCC)! ...  

Although CEO Jensen Huang announced Nvidia's next-generation chip architecture called Blackwell and related products, including the company's latest AI chip called the B200, we can see on my attached 15 Minute Chart that price lost ground in the hours after Huang ended his keynote speech. When the event started at 4 PM ET, NVDA was trading around 888, but now, as we speak, the stock is trading at 865.50. 

More importantly from our technical perspective, the near-term setup is bearing down on key near-term support at 862-866, which must contain further weakness to avert a press to challenge much more consequential support lodged from 842 down to 825 that represents EITHER the bearish gateway to lower corrective targets from the ATH at 974 (3/08/24) to 760-770 and if violated, to 700-710, OR a floor that will repel the weakness and launch NVDA into another upleg toward 1000.

Right now, my bias is to the downside for a break of 862-866, for starters.  Only a rally from a above 862 that takes out nearest resistance at 888.00-894.50 will neutralize my current outook... Last is 867.25...

Next Up: ES and then EWJ and the Yen...