NVDA Near Historic Highs: Awaiting Key Breakout SignalsI’m sharing a weekly chart analysis for NVDA, focusing on its current position near historical highs at $129 after a bounce from $90.
From the logarithmic scale chart, it's clear that NVDA has been in a long-term progression channel since July 2015. Currently, the price is positioned on the upper deviation line of this channel, indicating a potential resistance area. Given this position on the logarithmic scale, I am leaning towards a short bias as it suggests we could see a pullback or correction.
I’ve also identified two cup & handle patterns, each with their respective targets. However, these patterns will only be validated based on the next price movements.
While there is still a blue support trend and a red resistance trend in play, the price near its historical highs and its proximity to the upper boundary of the progression channel suggest that a downward movement could be more likely. However, due to the large time scale of the weekly chart, we should wait for further confirmation of a downtrend before taking a short position.
For now, I recommend caution and suggest waiting for a confirmed breakout or breakdown from the current channel before making any decisive trades. I’d love to hear your insights and thoughts on this setup.
