So this is why I believe Nvidia stock is going to pull back What's going on guys, it's Ricky with talk about Solutions here with a super quick stock market Update: You guys know that I love making videos not just when something is showing great signs of upside potential, but also to show signs of caution when something has huge downside potential. A lot of you guys know that Nvidia After shortly reporting earnings and based off of future expectations due to AI the company went from a 700 billion dollar company to the first trillion dollar company that produces micro conductors. Now let me go ahead and start sharing my screen so you guys can see exactly what it is that I'm looking at I Don't normally always make videos like this where I break down just one stock if you like this video again, all I ask you to do is drop a thumbs up, show some love, and of course consider subscribing if you're new to the channel and I would love to continue to make them for you. So the first thing that I want to talk about is on the tech vertical side.

This is Nvidia stock ticker symbol Nvda When looking at it on the day chart, you can see that again it made all-time Highs At 4 1934 If we look at the four hour time frame, we can see things a little bit more clearly. It was previously trading at lows of 300 a share, but when it reported earnings and it beat expectation. but not just that, beating expectation is one thing, but it's guidance. A future expectation was insane and based off of where it was and what it hit highs of just on that first day, it made at one point over 30 percent.

within 24 hours making over 250 million I'm sorry not million 250 billion dollars, it gained in market cap making it the first company that again produces micro micro semiconductors to be worth more than one trillion dollars. If you guys see the overall upside potential at the Oh overall lows to the overall highs that gained nearly 40 percent. Now what are we looking at and why do I see there to be some downside risk? I Have never seen and again this is 100 my opinion. but I have never seen a company that gaps up 30 to 40 percent and that doesn't end up correcting itself.

What goes up kind of like a slingshot must come down right and normally just as quick, but again only time will tell and I've been wrong many times. Maybe I'm wrong with this one. You guys let me know down in the comments section I know AI is something that a lot of people are interested in, but I wanted to share with you a quote that Elon Musk shared today about Nvidia so it says Elon Musk CEO of Tesla says is not very impressed with this performance. The billionaire who has won the Uh who was one of the first to invest in Open AI the startup that developed Chat GPT believes that Nvidia's current popularity is due to the fact that the group enjoys a virtual monopoly situation, meaning that they pretty much run and own the whole chip manufacturing space.

This will not last, Promises must. Who foresees the arrival of other actors able to produce processors capable of being very efficient in their task of taking, data, collecting and classifying them as very excellent at a very accelerated rate. The processors are called the neural network accelerator chips and then accelerators and this is again from the billionaire the competition is coming for NVIDIA. You guys let me know what you think.

Do you think that Nvidia is close as close to a monopoly because I know Intel used to be this right and an Intel tanked when AMD and Nvidia kind of came into the picture and then now Nvidia has I Would say kind of taken over looking at the market cap at 925 billion and then looking at AMD if we compare the two. the other one is at 189 billion but both have benefited from the idea of AI. But one of the things that I do want to remind you is that the forecast for the future production due to the AI demand is something that is expected to be seen within five years, right? Do you think that Nvidia has the possibility based off of overall markets NASDAQ right? if we look at NASDAQ Market it had a little bit of a run date today, right? It corrected itself. We're still holding above or near the EMA.

But what happens if NASDAQ begins to sell off back to the moving average right? What will happen to Nvidia? Well, Nvidia gapped up even within within this small range right from Lowe's to our current support right or support being right around 370 375. that is a 23 move. Now what is it On the downside, right from overall current support, if we move down to the moving average, that is a potential drop in a perfect world of around 17.43 percent. I mean the only thing that I want to share with you is I wanted to share with you What Elon said I wanted to share with you It's I think much easier to see on the technical side of how quickly it gapped up.

It's consolidating. here. it has built a support right? I'm not the only one that sees this as built a support right. Every time it would come back to retest it would come back to retest it would hold Above This General Support range.

What happens when we break below that right? There is no. there is no previous resistance here because we quickly gapped up right. So if we break below the support is it going to be a quick gap down? The only last thing that I want to share with you is now that we talked about the technicals. Now that we talked about Elon Musk is well, did you hear that I believe it was May 26th um Nvidia and their Executives sent out an order that they were liquidating and had the option to exercise 10 billion dollars worth of Nvidia stock and to sell it at any time they want to I don't think it's rocket science I don't think it's it's hard to understand or to Fathom that even the executives were like wow, this is this is huge for NVIDIA but they're going to need cash right? especially if they want to continue to reinvest in other areas.

And if they believe that their company might be overvalued then it makes sense on why they would liquidate right? I believe Elon Musk even did the same thing when Tesla hit all-time highs right? It wasn't a perfect exit, but it was a decent exit after it already gapped up 30. So I wanted to share this idea with you and again, it's 100. Just my opinion and you guys let me know down in the comment section if NASDAQ were to drop back to the moving average as we just saw right. If we know what we know now about Nvidia being the current Monopoly but possibly not in the up and coming future due to up and coming competition and then what we know about Nvidia's Executives of being able to liquidate 10 billion dollars worth of you know shares.

Would it be much of a surprise if Nvidia actually begins to pull on back I don't think so and I Have never seen especially a billion dollar company that gaps up this quickly and that doesn't end up correct in itself, right? It's not that it has to crash right, but a healthy correction coming down and just again allowing the company to breathe back to more realistic levels. and hopefully it can continue that ascending uptrend pattern. And I do want to remind you you might be like, well, Ricky what could trigger a sell-off on NASDAQ Well next week on uh, June 13th we have our CPI data report which is the inflation report which will tell us if inflation is going up or down. Then the next day on June 14th we have the Fomc meeting where the Federal Reserve will tell us if they're going to do rate hikes, rate pauses, or rate Cuts But don't worry I'm going to be live streaming both of those events for free on my YouTube channel and all you need to do is subscribe I Wanted to share this idea with you guys I Hope that you guys appreciate it I Do want to remind you I Do trade live every single morning with my Lpp team and if you want to watch me trade live as soon as tomorrow, make sure you click the second link in the description down below and I will see you tomorrow at Market Open for our live training session I'll see you guys next time.

Take Care Team!.