Today I contemplated closing 75% of my long in NVDA as it is well in profit and I have much leeway right now to walk away and let a small amount ride. The reason for this is because NVDA has broken both a key upward sloping trendline as well as the .786 Fibonacci level on the daily and 4 hour time frames.
This does not have to be the end of the road for NVDA but it is not a bullish sign either to say the least.
It does appear, however, that Nvidia could be in for some short to midterm consolidation before regaining the needed momentum to break back above all time highs.
A few things that are good from a bulllish perspective is that a week ago we broke out of downward sloping resistance and managed to break and close fully above the .786 Fibonacci level not to mention we set higher highs in the process of doing that.
For this reason I am remaining in my long.. but there is a further issue. The issue is that we are in the process of putting in a macro lower high and this could be very bearish for the asset if it does not find bids this week and at the very least break back above $203. If not, a retest of the $198 price level could be very likely.
This entire range from $198 all the way down to $194 could be a great re-entry area for a long as there is much bullish confluence in this region which should provide for ample support.
It is this reason that I am remaining in my long. I will not be looking to add to my position should the price come down to the aforementioned price levels.. I will, however, remain patient by waiting and seeing if any bids come in at the green zone I have showing on the chart. If this green zone does not hold, I will be 75% out of the trade should we break and close a daily candle below the 0.5 fib level at $194.
Tomorrow's open and close on the daily chart could be telling. Keep in mind though, that the week has just started and NVDA has plenty of time to make up for the major, yet small ground it has given up to start the trading week.
This does not have to be the end of the road for NVDA but it is not a bullish sign either to say the least.
It does appear, however, that Nvidia could be in for some short to midterm consolidation before regaining the needed momentum to break back above all time highs.
A few things that are good from a bulllish perspective is that a week ago we broke out of downward sloping resistance and managed to break and close fully above the .786 Fibonacci level not to mention we set higher highs in the process of doing that.
For this reason I am remaining in my long.. but there is a further issue. The issue is that we are in the process of putting in a macro lower high and this could be very bearish for the asset if it does not find bids this week and at the very least break back above $203. If not, a retest of the $198 price level could be very likely.
This entire range from $198 all the way down to $194 could be a great re-entry area for a long as there is much bullish confluence in this region which should provide for ample support.
It is this reason that I am remaining in my long. I will not be looking to add to my position should the price come down to the aforementioned price levels.. I will, however, remain patient by waiting and seeing if any bids come in at the green zone I have showing on the chart. If this green zone does not hold, I will be 75% out of the trade should we break and close a daily candle below the 0.5 fib level at $194.
Tomorrow's open and close on the daily chart could be telling. Keep in mind though, that the week has just started and NVDA has plenty of time to make up for the major, yet small ground it has given up to start the trading week.
