Lauren's NVDA Trading Report - September 9th to 13th. Monday, September 9th
Pattern Identified: Rising Wedge
Key Events:
The price formed a rising wedge pattern early in the session, signaling potential weakness or a reversal. The breakout occurred downwards from this pattern.
Retest (Failed): After the breakout, there was a retest attempt at the breakout level, which failed, confirming the breakout's strength. The price later tested the pre-market high, but the rejection confirmed the downward bias.
Key Indicators:
EMA (9) acted as dynamic resistance throughout the day after the breakout.
VWAP held as support initially but turned into resistance after the wedge breakout.
Tuesday, September 10th
Pattern Identified: Choppy morning followed by a "Cup with Handle"
Key Events:
The market started the day with a choppy, range-bound movement before breaking out from the cup-and-handle pattern.
Breakout (No Retest): The breakout from the handle of the pattern did not experience a retest, which implies strong momentum.
Support: A solid support level formed at $106.98, providing a base for the day’s upward movement.
Key Indicators:
EMA (9) aligned with the breakout and confirmed the upward momentum after the handle formation.
VWAP played a significant role in supporting price action throughout the day.
Wednesday, September 11th
Market Character: Strong Bullish Momentum
Key Events:
Open Range High: After the morning range, the price broke out from the open range high, initiating a strong upward trend for the rest of the day.
Retest: The price successfully retested the breakout level, confirming the bullish continuation.
The session ended with clear strength as price closed near its highs, showing little to no retracement.
Key Indicators:
EMA (9) and VWAP were well below the price, suggesting that bulls controlled the session.
Key Level: $111.92 was an important level that aligned with the breakout and acted as a major support during the day.
Thursday, September 12th
Pattern Identified: Failed "Double Top" and Change in Plan
Key Events:
The initial session featured a failed double-top pattern, leading to a plan adjustment towards the "Open Range Break & Retest" strategy.
Retest: The price retested the open range high after breaking out and found support, confirming continuation.
Candle Confirmation: A strong bullish candle after the retest confirmed the reversal from the earlier failed double top.
Key Indicators:
EMA (9) supported the price action throughout the day.
VWAP indicated market consensus, confirming the bullish trend after the retest.
Friday, September 13th
Market Behavior: Consolidation with Key Levels
Key Events:
The market remained confined within the pre-market high (PMH) and pre-market low (PML) levels, trading in a tight range.
There was an overall consolidation pattern, with price respecting these levels but showing no clear breakout.
Caution: Trading within pre-market range levels usually suggests indecision or range-bound conditions.
Key Indicators:
EMA (9) and VWAP both fluctuated closely with price, indicating a neutral bias for the day.
Key Levels: PMH and PML levels played a significant role as support and resistance.
General Feedback & Analysis:
EMA (9) and VWAP: These two indicators were crucial throughout the week, often acting as dynamic support or resistance, particularly on trending days like Wednesday and Thursday. VWAP was also reliable during choppy or range-bound sessions.
Chart Patterns: Key patterns such as the rising wedge on Monday, the cup and handle on Tuesday, and the failed double top on Thursday were pivotal in signaling market direction. These patterns, paired with confirmation indicators like retests or candle patterns, provided excellent trade setups.
Breakouts and Retests:
The retest on Wednesday confirmed a strong bullish day, showing that waiting for a retest can significantly improve trade outcomes.
The lack of retest on Tuesday's breakout indicates that when breakouts occur without a retest, they often signal strong momentum.
Key Levels: Premarket highs and lows, as well as open-range levels, were critical throughout the week. Maintaining an eye on these levels and observing how price reacts around them provides high-probability trade setups.
Friday's Range: The price action remained contained between pre-market high and low, suggesting a non-trending or indecisive day. Such days call for caution and perhaps a range-bound strategy rather than breakout strategies.
