📉 $Invesco QQQ(QQQ)$ is down 8.28% YTD, and leading chip stock $NVIDIA(NVDA)$ has taken an even bigger hit, plunging 19.29%.
In a downtrend, how do you react? Are you the type to quietly add to your position, or do you seize opportunities in both directions?
Did you catch the wave? Some traders did!
🎉 Huge congrats to @TRADER456 who secured a $5,311 profit shorting NVDA, with unrealized gains reaching $7,111 at one point!
He first shared:
Markets are already crashing 2 days before in anticipation of liberation day. Predicting huge imminent crash on liberation day April 2nd that could possibly plunge the market into a recession phase. Fear is at an all time high.
Today, he followed up:
Took profit after a slightly strong bounce from broader market in midday. Could be a slight bounce for a bull trap before the hammer. Will be looking for another short opportunity.
🔹 Trading with the trend—long or short—proves to be profitable! What’s your approach to trend analysis?
From a technical perspective, NVDA has been in a downtrend since hitting its all-time high of $153.13 on January 7. Currently, it’s trading within a consolidation range.
If NVDA falls to around $97, it could trigger a rebound toward the upper range at $118, presenting a potential 20% upside.
📌 Key question: Is NVDA approaching a buyable level?
The $97 support level appears to be a key balance point. If the price stabilizes and shows signs of strength at this level, it could present a potential rebound opportunity.
But looking at the broader semiconductor sector, a bigger question arises: Has the chip cycle ended?
$Taiwan Semiconductor Manufacturing(TSM)$ : Down 15.95% YTD
$Broadcom(AVGO)$ : Down 27.78% YTD
$VanEck Semiconductor ETF(SMH)$ : Down 12.68% YTD
💡 Is the semiconductor cycle truly over, or are we near the end of a downturn, with a recovery on the horizon?
Drop your thoughts below! ⬇️
Comments
The semiconductor sector has been hit hard, but I don’t believe the chip cycle is over. We’re likely in the latter stages of a downturn, with a potential recovery on the horizon. Demand for AI, cloud computing, and edge computing remains strong & companies like NVDA are still fundamental to these long-term trends.
$97 looks like a key level for NVDA, and if it stabilizes there with signs of strength, I’d consider adding to my position. However, I remain cautious and will watch for confirmation rather than blindly buying the dip. As for my overall strategy, I stick to my long-term investment plan.
@Tiger_comments @MillionaireTiger @TigerStars @TigerGPT