NVDA Technical Analysis for Oct. 1, 2024Current Price Action
NVDSA shows a descending channel or wedge pattern, indicating a period of consolidation after a significant move. This suggests a potential breakout either upwards or downwards.
The stock is attempting to break out of the channel, signaling a possible bullish move if it continues to hold above the trendline.
Support and Resistance Levels
Immediate Resistance:
$124.47 - $127.60: This is the nearest zone where the price has previously rejected, marking it as a strong short-term resistance area.
$130.00: A key psychological resistance level, which could act as a major hurdle for any bullish continuation.
Immediate Support:
$121.40: This level aligns with recent consolidation, serving as a short-term support.
$117.71 and $114.88: These are strong support levels marked by previous lows. If the price breaks these levels, it could lead to further bearish pressure.
$112.38: The lowest support marked on the chart, critical for assessing long-term bearish trends.
Entry and Exit Points
Bullish Entry:
If the price breaks above $124.47 and holds, this could provide a good entry point for a long position with a potential target of $127.60 and then $130.00.
Consider adding if momentum picks up and volume increases during the breakout.
Bearish Entry:
A break below $121.40 would signal potential weakness. If the price moves further down past $117.71, it could be a strong short opportunity with a target towards $114.88 or lower.
Exit:
For a bullish position, consider exiting near $127.60 or $130.00 unless there is strong buying pressure.
For a bearish position, take profits around $114.88, with a potential full exit at $112.38 if selling accelerates.
NVDA's price action.
Suggested Direction
Based on the current breakout attempt from the descending channel, NVDA leans slightly bullish. However, the stock must break and hold above $124.47 with increased volume for a stronger bullish case.
On the downside, failure to break above resistance and a move below $121.40 could signal the continuation of the downtrend.
