Weekly Market Pulse - August 24, 2025

Your Weekly Guide to Market Momentum & Breakout Opportunities

FEATURED SPOTLIGHT: NVIDIA (NVDA) - The Breakout King

$NVDA ( ▲ 1.09% )  

Current Status: $177.99 (-0.17%)

NVIDIA continues to dominate headlines as one of 2024's most spectacular performers. Based on the technical chart analysis you've shared, NVDA is displaying classic Elliott Wave patterns with several key observations:

Technical Analysis Deep Dive:

• Wave Structure: The chart shows a completed 5-wave impulse sequence from 2022 lows

• Current Position: Trading near resistance levels around $177-$178

• Key Support: Strong support zone identified around $160-$165 area

• Breakout Potential: Pattern suggests potential for continuation toward $200+ targets

Fundamental Drivers:

• Revenue surged 114.20% to $130.50 billion in 2024, with earnings jumping 144.89% to $72.88 billion

• 45 analysts maintain a "Strong Buy" rating with a 12-month price target of $192.23

• Hit new all-time high of $148 on November 7th, 2024, driven by Blackwell architecture introduction

• OTHER BREAKOUT CANDIDATES TO WATCH

1. Golden Cross Pattern Stocks

McDonald's and Cisco Systems recently formed the bullish "golden cross" pattern, where the 50-day moving average rises above the 200-day moving average. This technical indicator often signals sustained upward momentum.

Why This Matters:

• Historical data shows golden cross formations often precede 6-12 month rallies

• These patterns are forming during the current market breakout phase

2. High-Volume Breakout Characteristics

When evaluating breakout stocks, focus on:

• Volume Confirmation: Breakout stocks can offer quick gains as prices move rapidly after breaking resistance levels, indicating strong upward momentum

• Momentum Sustainability: Look for stocks breaking above key moving averages with expanding volume

Market Outlook & Strategy

Current Market Dynamics:

The August 2024 market environment is showing:

• Continued AI and semiconductor sector leadership

• Market rallies fueled by optimism over possible interest rate cuts

• Strong earnings momentum in tech sectors

Investment Approach:

1. Momentum Plays: Focus on stocks with strong technical breakout patterns

2. Volume Analysis: Ensure breakouts are accompanied by above-average volume

3. Sector Rotation: Monitor for broader market participation beyond mega-cap tech

 Weekly Watchlist

Immediate Attention:

• NVDA: Watch for break above $180 for continuation

• MCD: Golden cross momentum play

• CSCO: Technical breakout candidate

Upcoming Catalysts:

• NVIDIA earnings scheduled for August 27, 2025

• Fed policy decisions impacting rate-sensitive sectors

• Q3 earnings season approaching in early September

Quick Market Pulse

What's Hot:

• AI infrastructure stocks maintaining momentum

• Bull flag patterns suggesting potential for further price increases in tech leaders

• Semiconductor sector showing renewed strength

What to Watch:

• Interest rate policy impacts on growth stocks

• Earnings sustainability in AI-driven companies

• Broader market participation signals

NVIDIA's chart pattern suggests we're at a critical juncture. The Elliott Wave analysis indicates potential for significant upside if the stock can maintain momentum above current resistance levels. However, investors should monitor volume patterns and broader market sentiment for confirmation signals.

Key Levels for NVDA:

• Resistance: $180-$185

• Support: $165-$170

• Breakout Target: $200+

The combination of strong fundamentals and favorable technical patterns makes this an interesting setup for momentum investors.

Disclaimer: This newsletter is for educational purposes only and should not be considered personalized investment advice. Always consult with a qualified financial advisor before making investment decisions.

Next Week: We'll dive deeper into sector rotation patterns and identify emerging breakout candidates beyond the mega-cap tech names.