NVIDIA’s shares took a bad hit during the 2007-2009 stock market crash. Prices fell down from an all-time high of 54$ to 6$, which is 89% devaluation. What is more important is the wave structure of the crash – a five-wave impulse for A. NVIDIA then bounced up to 28$, but rally was limited to only three waves, which in terms of the Elliott Wave Principle, suggests for a fake recovery in wave B. Indeed, after reaching 28$, prices fell for a smaller impulsive wave down to 12$.
So what we have is a complete 5-3 Elliott Wave cycle to the downside for waves A-B and the normally expected wave C already developing. NVIDIA managed to survive after the crash of 2007-2009, but it seems like investors are going to lose all hope. The question is will NVIDIA be able to take another hit or the damage will be too much this time? How cheap could NVIDIA go with the company still be existing?
