So far on NVDA we are still up nicely on our original idea and as we predicted NVDA is now putting all of our fib levels to the litmus test as it finds itself right in the middle zone of the entire fib retracement.
I expected the .383 to be properly tested before liftoff and so far it is holding up.
If it can continue to hold, NVDA will find itself breaking out once more as a bullish falling wedge is now being painted on the 4 hour timeframe.
One could debate if this is valid or not due to the breakdown out of its lower trendline, and that is fine. Because what we are most interested in is the upper trendline of the falling wedge as it appears to be serving as resistance on the price.
This is not something to ignore as supply lines like this can often be a warning of an impending bearish downtrend if price continues to fail when touching it.
So for this reason I am moving my stop losses up to around $189.79. The reason for this is because of not only the bearish trendline over our head, but because a breaking to the downside of the .382 fib level with a confirming candle on the 4 hour could mean a retest of much deeper levels at or around the bottom of the falling wedge or our .236 fibonacci level. So closing my position in profit and buying right back in at a discount is what I will be looking for in the near future.
In the meantime, however, I am still in my long but I am monitoring closely. NVDA will need to get moving and break the red trendline but ultimately put in a higher high in price by breaking the .618 fibonacci level over our head but that discussion will be kept reserve for a future post or update.
I expected the .383 to be properly tested before liftoff and so far it is holding up.
If it can continue to hold, NVDA will find itself breaking out once more as a bullish falling wedge is now being painted on the 4 hour timeframe.
One could debate if this is valid or not due to the breakdown out of its lower trendline, and that is fine. Because what we are most interested in is the upper trendline of the falling wedge as it appears to be serving as resistance on the price.
This is not something to ignore as supply lines like this can often be a warning of an impending bearish downtrend if price continues to fail when touching it.
So for this reason I am moving my stop losses up to around $189.79. The reason for this is because of not only the bearish trendline over our head, but because a breaking to the downside of the .382 fib level with a confirming candle on the 4 hour could mean a retest of much deeper levels at or around the bottom of the falling wedge or our .236 fibonacci level. So closing my position in profit and buying right back in at a discount is what I will be looking for in the near future.
In the meantime, however, I am still in my long but I am monitoring closely. NVDA will need to get moving and break the red trendline but ultimately put in a higher high in price by breaking the .618 fibonacci level over our head but that discussion will be kept reserve for a future post or update.
In this idea we originally observed how NVDA was below a critical supply line (red downward sloping line) and needed to not only break out of it asap but also make a higher high above the $198 price level and since then it has done that exactly the way we needed it to.
And now, we beautifully find ourselves at an interesting point in time resting just above the .786 fibonacci, a CRITICAL level to be above currently as a rejection at this level would have certainly been bearish and would mean NVDA squaring up for a possible retest of our .236 fib level way back down near our original entry.
So needless to say everything has just about gone perfect thus far with this trade and there is not a ton I need to go over on this.. I will simply point out that I have once again moved my stop loss up to the $198 (.618 fib) level.
In the meantime watch the .786 fib level we are currently at closely. If support is indeed confirmed here we could be looking at blastoff well beyond all time highs again.