Nvidia Levels: A Well-Defined Prediction Playing Out
In my earlier article, I outlined two potential scenarios for Nvidia (NVDA) at a critical juncture. One of these scenarios highlighted the importance of the $131 support level, emphasizing that a bullish rebound could occur if the price held firm and buyers pushed towards the $140 resistance.
Possible scenarios:
Bearish if the price breaks below the $131 neckline, with $120 as the next downside target.
Bullish Rebound only if the $131 level holds and buyers regain control above $140.
NVDA levels at 131 and 140
Based on the updated chart, the analysis has unfolded as anticipated: NVDA found solid support at $131, prompting a strong rebound, and the price is now nearing the $140 resistance zone.
While market conditions always carry uncertainty, it is gratifying to see the levels identified in the previous analysis play out in line with expectations.
The Power of DLCs: Potential Returns
DLCs of Nvidia
Summary
The chart illustrates the significant outperformance of the 3x leveraged DLC ( $NVDA 3xLongSG261006(NVIW.SI)$ ) compared to the underlying stock NVDA over the 4-day period (this was when NVDA was around 131 support level mentioned).
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NVDA Return: The stock experienced a return of +8.35%.
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DLC Return (NVIW): The DLC achieved a much higher return of +26.17%.
Key Takeaways:
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Leverage Amplification: The DLC's 3x leverage significantly boosted returns during this period.
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Volatility: The DLC's performance is expected to be more volatile than the underlying stock due to the leverage effect.
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Risk: DLCs are high-risk instruments. While they offer the potential for amplified gains, they also carry the risk of amplified losses.
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For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook
Disclaimer:
This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
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