NVDA we ended the week with an Inside Candle What this means?Nvidia NOTE: We closed the week with an "inside candle" as the last candle.
What does this mean?
Last week, we analyzed the price movement, basing it on the idea that with strong momentum and divergence, the price could continue upward. However, for it to reach the point of interest, the price needed to make its natural retracement.
And that’s exactly what happened (I can hardly believe it myself).
The objective was met, and the price reached our highest point of interest. The issue here is that Nvidia still has a long way to go before it can make that bullish push!
The week closed with an "inside candle," or what some refer to as a "pregnant candle" (don't blame me, that's what they call it).
This type of candle pattern is bearish because it's when a candle loses momentum and starts to change direction. And it's quite obvious—if you can see, my point of interest comes from none other than an institutional liquidity zone. The price may start to struggle in this area, but that doesn’t mean it will fall drastically. No! Let me explain:
NVDA has been coming with a lot of strength since last week, and upon reaching an area where the price has historically retraced, it’s clear that this zone is like a swamp. The price will face the challenge of getting out of this swamp.
So...
The price comes in strong, touches an institutional zone, pauses, and starts forming bearish candle patterns. What is the price telling you?
To wait! The price will most likely make a retracement but will create a range where it will try 1, 2, 3 times or more to break out of this swampy area.
What should we be watching for? 1. Strong volume, and 2. A ranging channel fluctuating between supply and demand, which is essentially accumulating for the next push.
In the meantime, we’ll see what movement happens next week.
Best regards, and thank you for supporting my analysis.
