Analysis:
NVDA is currently consolidated in this rising wedge (bearish pattern) at the overall downtrend resistance area (Key Area). As of December 9th, 2022, NVDA has rejected off of the 200MA on the daily chart forming a shooting star candle pattern (bearish signal). This is also in confluence with this daily candle rejecting the resistance area of this rising wedge at a key supply area, and bearish divergence on the RSI (higher highs on the chart but lower highs on the RSI. Some added confluence is this daily candle is also rejecting the upper standard deviation on the Bollinger bands. NOTE: THE AREA IN FOCUS CAN BE LOCATED WITHIN THE YELLOW CIRCLE.
Trade Idea:
With this rejection at a key area and added confluences, NVDA is solid candidate for a put swing. With an entry here and a stop above the 200MA and high of the supply zone, I would first target the GAP FILL area between $142.05 - $145.52 and then finally target the previous demand zone at $125.01. I would look for far out contracts dated as far as March, April, or May with a strike price of either $145, $140, or $130. Also, being that the focus is to the downside, you can chart for day trade opportunities on the way to swing targets. Simply watch for rejects/breaks&retests on the way down at key support turned resistance levels. NOTE: BOTH TARGET AREAS IN FOCUS CAN BE LOCATED WITHIN THE RED CIRCLES.
SN: As I’m watching the market, I’m feeling that there will be a huge rally Q1 or Q2 of the new year., depending on the earnings reports over the next couple quarters. This projection is why I’m targeting the second target at the demand zone at $125.01. I am expecting a higher high or a close double bottom to be created at this area.
NVDA is currently consolidated in this rising wedge (bearish pattern) at the overall downtrend resistance area (Key Area). As of December 9th, 2022, NVDA has rejected off of the 200MA on the daily chart forming a shooting star candle pattern (bearish signal). This is also in confluence with this daily candle rejecting the resistance area of this rising wedge at a key supply area, and bearish divergence on the RSI (higher highs on the chart but lower highs on the RSI. Some added confluence is this daily candle is also rejecting the upper standard deviation on the Bollinger bands. NOTE: THE AREA IN FOCUS CAN BE LOCATED WITHIN THE YELLOW CIRCLE.
Trade Idea:
With this rejection at a key area and added confluences, NVDA is solid candidate for a put swing. With an entry here and a stop above the 200MA and high of the supply zone, I would first target the GAP FILL area between $142.05 - $145.52 and then finally target the previous demand zone at $125.01. I would look for far out contracts dated as far as March, April, or May with a strike price of either $145, $140, or $130. Also, being that the focus is to the downside, you can chart for day trade opportunities on the way to swing targets. Simply watch for rejects/breaks&retests on the way down at key support turned resistance levels. NOTE: BOTH TARGET AREAS IN FOCUS CAN BE LOCATED WITHIN THE RED CIRCLES.
SN: As I’m watching the market, I’m feeling that there will be a huge rally Q1 or Q2 of the new year., depending on the earnings reports over the next couple quarters. This projection is why I’m targeting the second target at the demand zone at $125.01. I am expecting a higher high or a close double bottom to be created at this area.
Trade closed: stop reached:
Stopped Out due to CPI Data release
Dennis Butler Jr.