Hello traders and investors! Let’s see how NVDA is doing today!
In the 1h chart, we did a false breakout from the previous support at $ 206, and we are going up nicely today. In fact, today’s reaction is quite important, as this might be the beginning of the famous Gap Reversal Ritual.
NVDA did three different types of gaps during its last bearish leg. First, it did a Runaway, triggering a pullback to the 21 ema. The second gap is a Breakaway, as it is losing the 21 ema and the previous support at the same time. The last gap seems an Exhaustion, as it looks like it was the final push for NVDA to hit its technical support at $ 206 area.
Now, if NVDA confirms any bullish chart/candlestick pattern reversal, we could fill all the three gaps in the mid-term. The next challenge is to defeat the 21 ema.
In the daily chart, there couldn’t be a better support level. We barely retested the 61.8% Fibonacci’s Retracement, and now it seems we are trying to defeat the 50% retracement, which is the same point where NVDA did a top on July (coincidence or not).
If NVDA truly reacts around this meaningful support level in the daily chart, defeats the 21 ema in the 1h chart, and confirms a reversal, it’ll trigger the Gap Reversal Ritual for good, and the chances that it’ll fill all the gaps will be quite high. In fact, I’ve never seen this pattern failing. This happened many times in the past with TSLA, AAPL, GOOG and many others.
For now, let’s just wait for more confirmation. Remember to follow me to keep in touch with my daily updates, and if you liked this idea, please, support it!
EXCELLENT ANALYSIS AS USUAL!
I was already long at 210 for few weeks before the big drop and hope it will go back up soon. Thanks Nathan
Nathan_Black
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@neatfreak301, Thanks, man! I appreciate the support.
NVDA is looking good, and probably it'll reverse.
All the best to you!
neatfreak301
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@Nathan_Black, thanks man. Please keep us all abreast, sharing your knowledge and excellent technical analysis. Any chance you will sometimes look into MrNA? :)
mildRice38006
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"In fact, I’ve never seen this pattern failing"
Nathan_Black
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@mildRice38006, "For now, let’s just wait for more confirmation"
I was already long at 210 for few weeks before the big drop and hope it will go back up soon. Thanks Nathan