The blue IT downtrend line has not been broken to the upside and sustained.
The broadening ascending wedge has also not been broken to either side and sustained.
In the short term, I can foresee the ascending wedge being broken AND sustained to the downside. The time is coming soon.
You see earlier last week, the ascending wedge broke down hard, but sharply reversed back into pattern.
Around March 9,10, I expect the blue downtrend line to act as key resistance to push us down and break the purple ascending wedge DOWNWARD and the move to be sustained.
Counter:
The blue downtrend line breaks upwards with NVDA closing above 250. It slowly declines each day.
I don't envision it breaking AND sustaining, however.
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Plan:
To shake out people, I do see it breaking the blue trendline temporarily upwards (if at all) and then sinking back down in to pattern. I just can't imagine any growth stock doing well in the next couple months with FED tightening cycle.
Any rallies to the upside won't be significant enough imo to be sustained. That is, unless the FED changes course.
If NVDA reaches the blue downtrend line, I will scale into put contracts. Not going in quite yet because as you can see, we still have a lot of room upwards until we reach that blue line. Be patient. The setup will come.
Idea - 04/01 NVDA 200p
Targets 197, 188.
The broadening ascending wedge has also not been broken to either side and sustained.
In the short term, I can foresee the ascending wedge being broken AND sustained to the downside. The time is coming soon.
You see earlier last week, the ascending wedge broke down hard, but sharply reversed back into pattern.
Around March 9,10, I expect the blue downtrend line to act as key resistance to push us down and break the purple ascending wedge DOWNWARD and the move to be sustained.
Counter:
The blue downtrend line breaks upwards with NVDA closing above 250. It slowly declines each day.
I don't envision it breaking AND sustaining, however.
------------------------------
Plan:
To shake out people, I do see it breaking the blue trendline temporarily upwards (if at all) and then sinking back down in to pattern. I just can't imagine any growth stock doing well in the next couple months with FED tightening cycle.
Any rallies to the upside won't be significant enough imo to be sustained. That is, unless the FED changes course.
If NVDA reaches the blue downtrend line, I will scale into put contracts. Not going in quite yet because as you can see, we still have a lot of room upwards until we reach that blue line. Be patient. The setup will come.
Idea - 04/01 NVDA 200p
Targets 197, 188.