On August 24th of last year, I predicted a course of $586 for NVIDIA simply based on important price levels and Fibonacci. At that time, the stock was trading at $479. Today, the stock is trading at $566 and is about to reach this seemingly crazy target.

Let’s take a look at the chart and see why Fibonacci can also be used for unconventional target zones.

NVIDIA in the weekly chart The low at $108 is clear. The last high at $346 as well. I have used both as a basis and drawn a possible constellation on Fibonacci lines. It turns out that the $346 level is at the 50% retracement. The recent highs in August 2023 also line up nicely with the 38.2% retracement.

(Source: Tradingview.com)

The 78.6% retracement marks resistance on the way down in early 2022. This is where prices turned around at the end of 2022 before reaching a new high.

If we combine all of this into a neat design, we get the target of $586. The stock has mainly made its way towards this target in the past week. A long green candle pushed the stock above $500 for the first time.

And it continues. It would be funny if the stock turns around just before reaching the target because there may be too many take profits in the market. The stock market rarely does exactly what we want it to do. Or at least not right away. So let’s wait and see. Whether and how quickly the stock will climb towards this seemingly unbelievable target.

When will NVIDIA start to decline? The possible levels for a correction in the uptrend are already revealed by the Fibonacci lines. There are strong supports at $403.

But whether the graphics card giant can even fall significantly lower remains to be seen. The topic of artificial intelligence is still in play. NVIDIA provides the appropriate chips for AI.

In addition, Bitcoin & Co. are also back in the picture. Graphic card chips are also needed to calculate the next blocks in the blockchain.

No matter how we look at it, NVIDIA will continue to be in demand. The sideways phase in the summer of 2023 may have already been the peak when it comes to declining stock prices. But who knows. Apple, Tesla, Facebook, and Amazon also only knew one direction for a long time. Eventually, the mega-trend will likely lose some steam. From a long-term perspective, NVIDIA is certainly a good investment. Any pullbacks would be attractive entry points.

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