Nvidia Corp : The stock has made a Bearish AB=CD Harmonic Pattern, before coming to target ill explain a bit of ABCD Harmonic pattern.

Harmonic Patterns are made up of Fibonacci Ratios. There are different types of harmonic patterns, one of them is Bearish AB=CD .

A Bearish AB=CD pattern is formed after an uptrend and signals a potential reversal on the downside on completion of the pattern. In this pattern point A is the starting point from where the price starts rallying higher. Point B is marked on completion of the swing up move and it refers to a significant high. From point B there is a small correction to point C such that BC leg is completed between 0.382-0.886 retracement of the AB. After point C the uptrend continues and a new high is formed i.e. point D which is above point B such that CD leg is 1.13-2.618 projection of BC leg.

In the Stock we have seen the completion of the pattern and we can see the move to the downside and we are expecting this move to 0.618-0.382 fibonacci ratio.

At the PRZ we have seen Engulfing so it is confirming, SL will be 2 of fibonacci ratio.

Sell

Jul 20 2021

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