NVDA in H&S & falling wedge patterns, and potential ST supportsNASDAQ:NVDA Swing Trading
Bearish short-term (no position) but bullish medium-long term.
Current Patterns
First, we see the price crossing the neckline of the Head and Shoulders (H&S) pattern on daily chart. The target price is at 110$, but not sure we reach this level. A close below the neckline would strongly confirm the bearish move with good volume. This is a good setup for short selling investors.
Additionally, there is a falling wedge forming (as shown in the chart), which is a potential bullish reversal pattern once it breaks up. This will be interesting to watch.
If the downtrend continues, the 20MA crossing below the 50MA on the daily chart, known as a death cross , would be a strong bearish signal. This indicates that the price is likely to face further downward pressure, as it reflects weakening short-term momentum compared to the longer-term trend. Historically, a death cross is associated with the beginning of sustained declines in price.To confirm this, watch for the daily close to solidify the crossover and be alert for other bearish indicators like the RSI and MACD showing continued weakness.
Strong support levels are found at $130, which acted as resistance in August, and the 100-day moving average (MA) on the daily timeframe at $127.90.
What I am watching for the next bull run
Volume has shown a slight increase, surpassing the 20-day moving average (MA) of volume yesterday, indicating growing interest. Today's close will be key to confirming the validity of the H&S pattern. Momentum indicators are bearish , with RSI under 39 and MACD in the red. However, I remain bullish on the short- and medium-term, so I’m watching for strong support levels and a potential reversal signal (RSI up, MACD green) with a solid bull volume.
What's crucial now is patience—I won’t enter when signals are bearish, and the next bullish setup isn't in place yet.
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