Nvidia's Correction Unfolds as Double Three Formation

Nvidia's Elliott Wave analysis suggests that the stock is in the midst of a larger correction from its all-time high of $236.54, recorded on May 14. The stock has been declining in a five-wave structure, with wave (A) concluding at $189.8 as a decline from the peak. A corrective rally followed in wave (B), terminating at $234.78.

The subsequent wave (C) is unfolding lower, subdividing into a five-wave impulsive structure. From the wave (B) high, wave ((i)) ended at $229.43, while wave ((ii)) retraced to $233.71. The decline continued with wave ((iii)) finishing at $217.2, followed by a modest rally in wave ((iv)) that reached $222.

The final leg, wave ((v)), dropped to $208.93, completing wave 1 of a higher degree sequence. At present, wave 2 is advancing as a double three corrective pattern. From the wave 1 low, wave ((w)) rose to $216.76, followed by a pullback in wave ((x)) that ended at $212.5.

This structure implies that the stock is likely to continue higher, aiming to complete a seven-swing double three formation with a potential target zone between $220 and $225. As long as the pivot at $234.7 remains intact, rallies are expected to fail after completing the corrective sequence.