NVIDIAUpdated NVDA Breakout Alert: TA for Nov. 20, 2024
NVDA has been exhibiting a strong recovery from its recent lows, breaking out of a descending trendline on the hourly timeframe. With bullish momentum building, this stock is primed for both scalping and swing trade setups. In this analysis, we’ll dive into the market structure, supply and demand zones, price action insights, and trading opportunities to capitalize on NVDA’s movement.
Market Structure Overview
* Trendline Breakout: NVDA has decisively broken out of a descending trendline, signaling potential upside.
* Current Price Action: Trading at $149.68 with strong bullish candles and volume confirming the breakout.
* Volume Analysis: Increased buying volume during the breakout phase, suggesting institutional interest.
Supply & Demand Zones
* Demand Zone (Support): $137.06 - $140.32. This area has historically seen strong buying interest and could act as a safety net for pullbacks.
* Supply Zone (Resistance): $149.95 - $155.00. This region is the next significant hurdle NVDA must clear to confirm a bullish continuation.
Key Levels
* Support Levels: $137.06, $140.32.
* Resistance Levels: $149.95, $155.00.
Order Blocks
* Bullish Order Block: $137.00 - $138.50. Watch for potential rebounds if NVDA retraces to this level.
* Bearish Order Block: $149.50 - $150.00. This area may see selling pressure and could be a profit-taking zone for scalpers.
Technical Indicators
* 9 EMA & 21 EMA (Hourly): The stock is trading well above these levels, indicating a strong bullish trend.
* MACD (Hourly): Bullish crossover with increasing histogram bars, signaling momentum.
* RSI (Hourly): Hovering near 70, indicating strength but watch for overbought conditions.
Scalping Plan
* Entry: Look for a pullback to the $147.00 - $148.00 range with confirmation from bullish candles.
* Exit: Target $149.50 initially, then $150.00 for extended profits.
* Stop-Loss: Tight stop at $146.50 to limit risk.
* Game Plan: Focus on momentum plays near breakout levels. Use high-volume candles as confirmation for entries.
Swing Trading Plan
* Entry: Buy on a retracement to the $140.00 - $143.00 demand zone.
* Exit: Partial profit at $149.95, with the final target at $155.00.
* Stop-Loss: Below $137.00 to avoid deeper pullbacks.
* Game Plan: Monitor for continuation patterns like flags or pennants above $149.00 to add to positions.
Projection
NVDA’s breakout is supported by strong technicals and volume. If it sustains above $149.95, it is likely to test $155.00 in the coming sessions. Failure to hold $147.00 may result in a retest of the $140.00 support zone, offering another buying opportunity.
My Thoughts
NVDA appears poised for further upside in the short term, but caution is warranted near key resistance zones. Scalpers should watch for quick reactions near $149.50, while swing traders can benefit from the broader trend. Stick to the plan, respect your stops, and let the market guide your moves.
Market Structure Overview
* Trendline Breakout: NVDA has decisively broken out of a descending trendline, signaling potential upside.
* Current Price Action: Trading at $149.68 with strong bullish candles and volume confirming the breakout.
* Volume Analysis: Increased buying volume during the breakout phase, suggesting institutional interest.
Supply & Demand Zones
* Demand Zone (Support): $137.06 - $140.32. This area has historically seen strong buying interest and could act as a safety net for pullbacks.
* Supply Zone (Resistance): $149.95 - $155.00. This region is the next significant hurdle NVDA must clear to confirm a bullish continuation.
Key Levels
* Support Levels: $137.06, $140.32.
* Resistance Levels: $149.95, $155.00.
Order Blocks
* Bullish Order Block: $137.00 - $138.50. Watch for potential rebounds if NVDA retraces to this level.
* Bearish Order Block: $149.50 - $150.00. This area may see selling pressure and could be a profit-taking zone for scalpers.
Technical Indicators
* 9 EMA & 21 EMA (Hourly): The stock is trading well above these levels, indicating a strong bullish trend.
* MACD (Hourly): Bullish crossover with increasing histogram bars, signaling momentum.
* RSI (Hourly): Hovering near 70, indicating strength but watch for overbought conditions.
Scalping Plan
* Entry: Look for a pullback to the $147.00 - $148.00 range with confirmation from bullish candles.
* Exit: Target $149.50 initially, then $150.00 for extended profits.
* Stop-Loss: Tight stop at $146.50 to limit risk.
* Game Plan: Focus on momentum plays near breakout levels. Use high-volume candles as confirmation for entries.
Swing Trading Plan
* Entry: Buy on a retracement to the $140.00 - $143.00 demand zone.
* Exit: Partial profit at $149.95, with the final target at $155.00.
* Stop-Loss: Below $137.00 to avoid deeper pullbacks.
* Game Plan: Monitor for continuation patterns like flags or pennants above $149.00 to add to positions.
Projection
NVDA’s breakout is supported by strong technicals and volume. If it sustains above $149.95, it is likely to test $155.00 in the coming sessions. Failure to hold $147.00 may result in a retest of the $140.00 support zone, offering another buying opportunity.
My Thoughts
NVDA appears poised for further upside in the short term, but caution is warranted near key resistance zones. Scalpers should watch for quick reactions near $149.50, while swing traders can benefit from the broader trend. Stick to the plan, respect your stops, and let the market guide your moves.
Trade active
NVIDIA (NVDA) posted solid earnings today, beating revenue and profit expectations with impressive year-over-year growth. However, despite these strong numbers, the stock saw a pullback of around 2% in after-hours trading. This drop seems to be driven by investor concerns about the company's ability to maintain its rapid growth and slight pressure on profit margins due to the rollout of new Blackwell chips.
Suggestions for Traders:
1. Short-Term Traders:
* The after-hours dip might offer a potential short scalp opportunity if selling pressure continues at the open. Watch for a break below key support levels (e.g., $141.50 and $137).
* Be cautious of sharp reversals if broader market sentiment remains bullish.
2. Swing Traders:
* If the sell-off extends tomorrow, look for entry opportunities at stronger support levels. NVIDIA’s growth fundamentals remain strong, and this pullback could attract dip buyers.
* Keep an eye on volume—if it spikes during the dip, it could indicate institutional buying.
3. Long-Term Investors:
* The current decline appears more like profit-taking or caution on growth sustainability rather than a reflection of fundamental issues. NVIDIA’s AI dominance and revenue guidance suggest long-term strength.
* Consider accumulating shares if they test major moving averages or retrace to $137 or below.
Key Levels to Watch:
* Support: $141.50 (near today's close), $137, $130 (deeper pullback area).
* Resistance: $149.50 (pre-drop level), $155.
Final Note:
Stay focused on price action tomorrow—any bounce above $141.50 with volume could signal the dip is being bought. For those entering trades, manage risk carefully with clear stop-loss levels, as NVIDIA remains a volatile stock during earnings season.
Disclaimer
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