NVDA wedging at massive support (Possible reversal opportunity)

Alright people! Time for some get back on NVDA! I was stopped drastically on my last NVDA play due to swinging during the previous CPI pump. Although my analysis played out eventually, I didn’t re-enter trade because of poor psychology and fear (accountability lol). BUT we’re back again and the motto for 2023 is “SEE A TRADE, TAKE A TRADE!”. Of course ONLY if it aligns with your strategy and rules.

NVDA Price Action Recap:

After the CPI data pump back on December 12th, 2022, NVDA rejected a weekly supply zone and also a previous major resistance area between $187.73 - $200.86. that has held resistance twice before this third touch during CPI. After CPI, NVDA traded below the rising wedge I was watching in a previous post. If I was the skilled trader I think I am, I should have re-entered at the break and hold below the wedge and continued with my trading plan. BUT hindsight is 20/20 so I’ll get off soapbox lol

As of week January 3rd, 2023, NVDA is holding the support area between $140.05 - $145.25 for the second week in a row while also showing declining volume on the weekly chart. This current support area is also in confluence with the 50% and 61.8% fibonacci levels, a premature bounce from the 200MA, and possibly creating an inverted head and shoulders formation/higher high in structure on the weekly. In contrast, NVDA is still trading below the 20EMA and 50EMA and it also yet to break out of the large higher timeframe falling so we still could be in a no trade zone right now.

Trade Idea:

If you’re a risk taker like me, I would take an entry at the support area between $140.05 - $145.25 with anticipation of another move up to finally breakout of this wedge. I would place a stop somewhere below $138.50 with targets of $157.17, $170.45, $178.36, and $187.38.

If you’re not a risk taker and a more conservative trader, I would watch for a breakout of this wedge and take reject play another reject play at the resistance zone between $187.73 - $200.86 before entering a long play at a pullback into a support or demand area. An alternative play to watch for if this current reclaimed support somehow doesn’t hold is a break and hold below $138.84 to play the downside for puts into the support and demand areas between $106.27 - $120.29. A move down to this area would created a massive double on NVDA’s weekly chart which would be another great early entry if you’re a risk taker and trade double bottoms. Either way, there are many opportunities here so be patient understand that trading isn’t predicting or gambling, it is the art of analyzing a stock technically and fundamental and reacting when confirmation is present, so with that being said trade accordingly.

NOTE: This is the weekly chart so if you are trading options please give yourself time by trading options that are far out in expiration to give yourself time and not be eaten up by theta and IV. LEAPS swings or long hold are recommended due to how long it may take for these moves to play out.