NVDA could move toward 300 once again and this means put options have high return potentials this week! Based on the current pattern it could make a Head and shoulder pattern or Islan Top formation!
What Is an Island Reversal? An island reversal is a price pattern on bar charts or candlestick charts that, on a daily chart, features a grouping of days separated on either side by gaps in the price action. This price pattern suggests that prices may reverse whatever trend they are currently exhibiting, whether from upward to downward or from downward to upward.
An island reversal changing from upward trending prices (bullish) to downward trending prices (bearish) is much more frequent than the opposite.
Head and Shoulders Pattern The head and shoulders chart pattern is a popular and easy-to-spot pattern in technical analysis that shows a baseline with three peaks, the middle peak being the highest. The head and shoulders chart depicts a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end.
The pattern appears on all time frames and can, therefore, be used by all types of traders and investors. Entry levels, stop levels, and price targets make the formation easy to implement, as the chart pattern provides important and easily visible levels.
You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!
Best,
Moshkelgosha
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@Moshkelgosha, There’s also a chance of stock going further down due to their Q4 results. The company may have outstanding results but the stock seems to be already overflated. Similar behavior was observed for other TEch companies. Even though they delivered stellar performance, the stock didn’t go much up.
What are your thoughts on this? Thank you once again.