NVDA – Path to Recovery or Deeper Pullback? Dec. 2 is attempting a rebound after recent downward pressure, but the path forward remains uncertain. This trading plan focuses on key levels, price action insights, and potential trade setups for both scalping and swing trading.
Market Structure & Price Action:
* Recent Trend: NVDA recently broke out of a descending channel on the 1-hour timeframe, signaling potential short-term recovery. The price currently hovers around $138, near the top of the previous resistance zone.
* Liquidity Zones:
* Buyers defended the $132 region, forming a demand zone.
* Liquidity is visible around $140–$142, which could act as a supply zone.
* Volume Analysis: Recent bullish candles showed increasing volume, supporting the breakout; however, Friday's close saw declining volume, indicating potential hesitation.
Key Levels:
1. Resistance Zones:
* $140–$142: Immediate resistance zone where sellers may step in.
* $144–$146: A stronger supply zone, aligning with prior consolidation.
2. Support Zones:
* $136–$137: First support where bulls may defend.
* $132: Critical demand zone and recent swing low.
Indicators:
* MACD (1-hour): Bullish crossover supports upward momentum, but the histogram is flattening, signaling weakening momentum.
* Volume: Watch for increasing volume to confirm a breakout above $140 or a breakdown below $136.
Trade Ideas:
1. Scalping Setup:
* Entry: Long above $138.50 with confirmation (higher volume or strong bullish candles).
* Target: $140–$141 (supply zone).
* Stop-Loss: Below $137.
* Scenario: If rejected at $140, consider a short position targeting $137.
2. Swing Trading Setup:
* Bullish Case:
* Entry: On a confirmed breakout above $142.
* Target 1: $146.
* Target 2: $150 (psychological level).
* Stop-Loss: Below $140.
* Bearish Case:
* Entry: Short below $136.
* Target 1: $132.
* Target 2: $128.
* Stop-Loss: Above $137.
Game Plan for the Week:
1. Monitor price action around the $138–$140 zone for early signs of strength or weakness.
2. Use lower timeframes (5-min, 15-min) to refine scalping entries based on volume and candles.
3. Be cautious of false breakouts, particularly with NVIDIA's high beta nature.
4. Pay attention to broader market conditions (QQQ movement), as they heavily influence NVDA.
Thoughts & Outlook: NVIDIA is in a critical zone. While the breakout from the descending channel suggests bullish momentum, rejection at resistance could lead to a retest of the demand zone around $132. Traders should approach with discipline and wait for clear setups before committing to positions.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please do your own research before making any trading decisions. Trading involves significant risk.
