$NVDIA - Take Profit Hit - Supply Area Ahead
Updating the trade idea previously exposed at the time of the breakout das displayed in the chart.
The 1st target of the bullish trade displayed has been hit. The price is currently trading against a powerful supply area.
What does this mean?
Can the price pierce through it like butter? Yes.
Is this the most likely scenario? No.
The bears that missed the massive sell off back in April 2022, are now being given another opportunity to sell.
The bulls who had been holding positions at the time and didn't sell could see this as a good opportunity to 'breakeven' or mitigate losses as they, most likely have been suffering throughout the past 12 months and could be craving to put an end to that suffering.
In the end, we don't know what is about to happen in this market. We don´t know which 'team' will win. But we know that there is a slight imbalance now in the seller's favor. We know that this is not an ideal scenario to hold a long position. We know that perhaps it's time to take profits for those who had taken a long position two months ago.
Manage risk. Manage risk. Manage risk.
Cheers,
Ruben
Tenacious Tribe: Your One-stop Shop for Backtested, Intuitive Trading Systems & Studies.
The 1st target of the bullish trade displayed has been hit. The price is currently trading against a powerful supply area.
What does this mean?
Can the price pierce through it like butter? Yes.
Is this the most likely scenario? No.
The bears that missed the massive sell off back in April 2022, are now being given another opportunity to sell.
The bulls who had been holding positions at the time and didn't sell could see this as a good opportunity to 'breakeven' or mitigate losses as they, most likely have been suffering throughout the past 12 months and could be craving to put an end to that suffering.
In the end, we don't know what is about to happen in this market. We don´t know which 'team' will win. But we know that there is a slight imbalance now in the seller's favor. We know that this is not an ideal scenario to hold a long position. We know that perhaps it's time to take profits for those who had taken a long position two months ago.
Manage risk. Manage risk. Manage risk.
Cheers,
Ruben
Tenacious Tribe: Your One-stop Shop for Backtested, Intuitive Trading Systems & Studies.
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