NVDA lacks upward momentum due to overhead resistance; avoid buying.

So, for those that don't know, because Nvidia makes the best AI chips in the world and the US controls what Nvidia is allowed to sell to China, we've seen restrictions come into place banning the export of the most powerful chips to China.

Trump approved limited H200 sales to China in December. That started in small amounts in February. There was a catch. The US is imposing a 25% tariff on these chips destined for China.

So, it's also worth noting Nvidia's newest chips, which is Blackwell and the upcoming Rubina architecture, they're still completely off-limits to China.

So, you're going to find things like Nvidia, Broadcom, Micron, AMD, Intel, Texas Instruments, uh Analog Devices, Marvell, Qualcomm, uh Monolithic Power, NXP, MCHP, ON Semiconductor, and SWKS, Skyworks. These guys are going to be hit first.

Now, this is important and this is why it matters. This, I think is the biggest company. It's close between Nvidia and Apple. So, if Nvidia goes, right? If uh let me change to blue over here.

If if Nvidia goes down, remember the the the S&P 500 is market cap weighted. The bigger these blocks are, they represent how big they are in the market cap weighting. So, if Nvidia goes down, it will take everybody with it.

And Nvidia was up 8% yesterday, something like that? Nvidia? Now, tell me order blocks don't work because it got rejected hard. And I believe yesterday I said I wouldn't be interested in this rally.

I saw a lot of people who were coming out and saying um how are you sure Nvidia should be valued at this point? I don't know. I It seems like it was valued perfectly fine at this level because it was the exact same price that it was 2 weeks ago.

But this overhead resistance is an area of trapped buyers. These buyers are so desperate to get out and they're getting out as fast as they possibly can. Once again, order blocks work.

In In Nvidia, while it's down today, is not down, right? We're basically sitting sideways on Nvidia since price today is literally the same that it was in May. So, price has literally gone almost nowhere in 4 months.

Let Let me Let me rephrase that. Almost nowhere violently. Let's Let's do a little bit of a of calculate. Now, when I click this, all my notes are going to show up, just so you know.

It went down 20% from tip-to-tip. And then it went back up 20-ish percent tip-to-tip, right? And so, while we went from having it it felt like nothing going on and Nvidia going sideways, it actually was way down and then way back up and now it's way down again today.

So, I don't know if it's going to continue down, but it doesn't have enough power, it doesn't have enough energy, it doesn't have enough momentum to push up higher right now. So, Nvidia is one I would definitely be staying away from.

But if you are going to, I just made a whole video about the Nvidia earnings blowout that we were just talking about. So, you should click this to learn more about that Nvidia earnings blowout.