NVDA : Facing Resistance, Short now, Stop -3.5%, Lmt+8.4%

Oh Yes, NVDA is ready to be shorted !!!

On October 26, I was convinced that it had just broken many technical reference points, projecting a nice and clear Head & Shoulders fall of -23%. On this one, I made an prediction error. Sorry about that. Or NVDA is very well managed; they know what they do!
Since then it has increased by +20%... Humm...

Well now, NVDA, we'll Wyn this time.

NVDA has just turned around today against resistance dating from August 2023 at $500.
So, projecting a correction is a good idea, I think so. No sure; we'll see.

As on the graph, a Short would be acted at 488.88, the Stop at 505.51 (-3.59%) and the Lmt target at 446.60 (+8.48%)
The target combined many supports:
- Moving average, Ma 18-21 (red)
- Moving average, Ma100 (blue)
- Fibonacci retracement at 0.5.

So Have a good time,

WynTrader

Trade active:

NVDA Short
On November 14th, we had a shooting star, showing a possible reverse down action. Combined, at the same time, with the resistance met, we have enter in a nice Short strategy.

So, for now, we have nothing to do: don't touch anything, just wait and stay Short.

Humm... Nothing is sure, but we are confident.

WynTrader

Trade closed manually:

NVDA Short - validity check

NVDA price did not fall enough to confirm this bear trade. Instead, the price action came back up. It is not a nice Short confirmation but an hesitation confirmation.

So I conclude that the risk of the Stop being broken is becoming greater than at the moment when the Short order was placed.

So, I have decided to close it on Monday at 9h30 open, whatever happens

WynTrader

Trade closed manually:

NVDA Short

As anticipated the price is now going up, just before that the results will be published today.
Anyway, at the open this morning our Lmt order was executed ar 493.12 for a little lost of -1% versus our Short trade at 488.00

See you next time. Humm...

WynTrader

Comment:

Hello there

Often, in the past, it happened that I changed my mind during a trade, and often I was wrong. Now, with more experience, I occasionally change my mind about a trade, enven that is well prepared, and occasionally I am wrong.

I can say that the conditions were changing, so I was right to close that trade... But, the conditions are always moving, isn't it?

And, when we take a closer look we see that the Stop at 505.51 would have not been executed because the height touched was 505.48 !!!

It happens, anyway, to everyone and maybe more often than we want to talk about...

WynTrader

Comment:

Hi there

We now know that this Short trade should not have been closed manually, as explained before, because the stop value was not touched.

But, if not?
Would it have been necessary, at one moment or another, to adjust (up or down) the value of our profit target.
Why? Because, as always, everything is moving in this world and also for NVDA.

Remember that our profit target was determined by the conjunction of two Moving averages, the Ma18 (red) and the Ma100 (blue).

And, "As time goes by", for this trade specifically (and for others very often), our Moving averages where moving up.

So, the Target had to be adjusted to face Moving average resistance to be met at the Ma100 (blue).
Note that this Ma100 was in conjunction with the lower Bollinger Bands, another support at this one moment.
And, why not take a note that a high Volume/Price was waiting at the same place
It’s a triple support area!

Funny, isn’t it?

WynTrader,
Pretty good… after the facts…