NVDA: Inside a Dangerous Trap Zone.

• NVDA is trading inside a Trap Zone, between the $289 resistance and the ascending 21 ema, which is squeezing the price as time passes;
• Only a breakout of one of its key points would bring something new to NVDA. Usually, Trap Zone breakouts are quite powerful;
• By breaking the resistance at $289, NVDA would just resume the bullish sentiment, and the next resistance is only at $313;
• The bias is already bullish, and NVDA is in a bull trend, because it is doing higher highs/lows and it is above an ascending 21 ema. Therefore, an upwards breakout is more likely;
• However, what if it loses the 21 ema? In this case, the next technical target is the $272, which is the trigger point of a possible Double Top chart pattern.


• There’s a Descending Channel on the 1h chart, and if NVDA breaks it upwards, it’ll just reinforce the bullish sentiment;
• By losing it downwards, NVDA would probably lose the 21 ema on the daily chart as well, and the next technical target is the $272 (black line);
• As mentioned above, the $272 is a trigger point of a Double Top pattern, on the daily chart, and the technical target for this pattern is the $262 area (blue line);
• Therefore, it all depends on how NVDA will react from here, and to which direction the breakout of the Trap Zone will occur.

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