NVIDIA displays a robust uptrendNVIDIA displays a robust uptrend, confirmed by the price action consistently forming higher highs, a classic indicator of bullish sentiment. The Moving Average Convergence Divergence (MACD) substantiates this, as the MACD line is positioned above the signal line, indicating maintained upward momentum.
Relative Strength Index (RSI) reads above 70, signaling that the stock might be in overbought territory; however, in strong trends, the RSI can remain overbought for extended periods. It's essential to watch for any divergence or RSI turning downwards as it might foreshadow a potential reversal or pullback in price.
The stock's current price is hovering around the 726 USD level, with the Fibonacci extension levels providing potential targets and reversal points. The next significant Fibonacci level, the 0.382 extension, is near the 760 USD price mark, which could act as a resistance zone. Conversely, a retracement could find support near the 680 USD level, aligning with the 0.618 Fibonacci retracement.
Volume Profile shows higher trading activity at lower levels, suggesting that if the price retraces, these zones might offer substantial support. This could align with smart money concepts, as institutional investors often accumulate positions at such high liquidity levels.
Smart Money Concepts, with labels like 'BOS' (Break of Structure) indicating past areas where price structure was significantly altered, potentially by institutional activity.
NVIDIA presents a strong uptrend with multiple indicators supporting continued bullish behavior. However, traders should be cautious of the overbought RSI and prepare for potential pullbacks to key Fibonacci levels, keeping an eye on volume profile zones for major support. Traders looking to follow smart money might consider these areas for strategic entries, keeping abreast of potential reversals signaled by RSI and MACD changes.
