Good week for nvidia users, are you enjoying playing minecraft on your RTX 2080 TI SLI on 4k so far? I do hope so =)
Lets take a look on our NVDA stock, we can see on the history that NVDA pretty much rallied up from dips toward ATH on 292 usd level and then a HUGE SELL OFF toward 125usd zone losing 56% of value!
So what now?
Now, 120usd is a HUGE (resistance before) not only because the sell off stopped there but weekly 200SMA approaches this level as well.
Looking and we can see the price might be forming a HS formation meaning accumulation time! This can be also confirmed by the increasing on the buying waves and decreasing on selling waves.
Standard trade, wait for a breakout of the HS formation of course, what do you expect? im just a trader not a magic guy ;)
Primary target near 200 USD zone , weekly 50% fibo retration and a strong even number and therefore psichologic resistance.
S.L around 142 level (if you believe on this stock you can just leave the S.L under 120 usd and wait for the rally, if this ever happen again)
Nothing further, enjoy the idea? leave a like, i really appreciate
This Trading Idea is to be used for educational purposes only. This idea does not represent financial advice and its NOT a signal. You should trade based only on your own technic and knowledge.
The HS / reverse HS concept is all about accumulation/distribution
Buying waves getting with larger volume/selling waves with smaller volume and the opposite for the inverse.
This is happening, furthermore, that spike quickly went under the neckline again, meaning that was likely an artificial/manipulated movement of the market made by big players.
Overall, this doesnt mean NVDA will rally toward 200 =p
This is just to explain why IMO this HS is valid.
Lets see how it'll open tomorrow on faster timeframes (like 5m), can be a good confirmation of breakout (or trap)
I think its possible since there is no big resistance before this level.
It'll all depend on how price and volume will behave.
But from a pure T.A point of view, sure.