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.
I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
• 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.
I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
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