What i see in the chart is a very bearish chart set up. This is purely based on Technical analysis.
We find ourselves in a bear flag pattern formation and a upsloping parallel. Both of these patterns typically resolve themselves to the down side 8/10 times.
Thus making this a great shorting opportunity! My levels are shown in the image.
Based on my trading rules and methodology we have clearly broken the support levels and had an additional candle closing bellow the first break of support. So far price has retraced back to what i call the retrace to the scene of the crime. Which essentially all it means is that it retraced to the trendline that once was support now flips to resistance.
Another factor to consider is that the recent mini price surge is to be expected since price likes to retrace to former support levels to test them but more importantly its currently not show in my chart for the purpose to make the chart more clean to read but if you were to put the 200 day and the 50 day SMA ( simple moving averages) you can clearly see a death cross is upon us and typically price likes to rally to the cross only to be rejected and go lower.
So far I started with 1% of portfolio to start the trade and when it hits my add levels i will essential double my position. This is to mitigate risk and build my core position
The Bear flag has a measured move target of $134.45 I'm personally not looking to hold my short until then since there is no guarantee that it will get there but my first major target is the $153.10 price I might take it off the table even a little before then all depending on market conditions at the time.
We find ourselves in a bear flag pattern formation and a upsloping parallel. Both of these patterns typically resolve themselves to the down side 8/10 times.
Thus making this a great shorting opportunity! My levels are shown in the image.
Based on my trading rules and methodology we have clearly broken the support levels and had an additional candle closing bellow the first break of support. So far price has retraced back to what i call the retrace to the scene of the crime. Which essentially all it means is that it retraced to the trendline that once was support now flips to resistance.
Another factor to consider is that the recent mini price surge is to be expected since price likes to retrace to former support levels to test them but more importantly its currently not show in my chart for the purpose to make the chart more clean to read but if you were to put the 200 day and the 50 day SMA ( simple moving averages) you can clearly see a death cross is upon us and typically price likes to rally to the cross only to be rejected and go lower.
So far I started with 1% of portfolio to start the trade and when it hits my add levels i will essential double my position. This is to mitigate risk and build my core position
The Bear flag has a measured move target of $134.45 I'm personally not looking to hold my short until then since there is no guarantee that it will get there but my first major target is the $153.10 price I might take it off the table even a little before then all depending on market conditions at the time.
Trade active
I have a 4% short on NVDA currently, I added in the afterhours on my add level. I'm still following the chart. Taking it one step at a time! $189.60 is my current average price. Watch my update videos for more info and my thought process. Thanks.Note
Video update 4/16/2016 In my channel
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.