Just about every investor I know has owned NVDA for a while and has made a pretty penny on it. So, it pained me to deliver the charts’ warning back on Feb 27. From NVDA: Good Enough?

Judging from its price action overnight, NVDA’s earnings and outlook were good enough. As we approach the open, however, it’s obvious that it hasn’t made new highs just yet – not a good sign… Remember, if it breaks down, NVDA has downside to 104.

Seven trading days, a further 20% loss, and a completed Head & Shoulders pattern later, we’re only a few points away from that price target. What happens if 104 doesn’t hold?

continued for members…

The key is that pretty obvious Head & Shoulders pattern targeting 68ish The pattern has completed, so it’s perfectly legit to think it’ll play out. It’s also close enough to a .618 retracement that there’s even more reason to think it might play out. But, geez, what an ugly development!

We should also note that it would land the stock around the midline of the big white channel which has been guiding the stock for 15 years.

Needless to say, this would mean the overall market is in big trouble – not hard to believe based on what’s happened so far.

Stay frosty.