NVDA 9/30 Technical Analysis1. Price Action Overview:
Current Trend: The price has broken below a key trendline, and it appears to be in a downward consolidation phase. The volume seems significant on the down moves, which indicates selling pressure. There’s also a visible rejection of higher prices near the top of the trendline.
Heikin Ashi Candles: These show a recent series of red candles, signaling that bearish momentum is dominant. However, the smaller bodies suggest that the selling pressure may be weakening slightly.
2. Key Levels:
Support:
120.65 - 120.56: This area is a near-term support level. If the price breaks below this zone, it could indicate further downside pressure. There is also a clear cluster of price activity around this level.
114.88: A stronger support level visible on the chart. If the price continues to fall, this area could act as a more significant support zone.
112.78: This is the next major support, shown by the low from previous trading sessions. If the price hits this level, a bounce could occur, but a break could signal a larger bearish trend.
Resistance:
121.83: Immediate resistance, shown as a red horizontal line. NVDA has struggled to break this level recently, making it a key area to watch.
124.47: A secondary resistance level, which aligns with prior price action. If NVDA can break above 121.83, it might rally toward this area.
127.60 - 127.66: This is the upper resistance level where NVDA was previously rejected. If there’s a strong bullish reversal, this zone could become a target for price movement.
3. Potential Entry/Exit Points:
Bullish Scenario:
Entry: Consider going long on a bounce from the 120.65 - 120.56 support area if the price shows signs of holding with confirmation from Heikin Ashi candles turning green.
Exit: First target would be the 121.83 resistance, followed by 124.47. A break above this level could lead to further gains towards the 127 area.
Stop Loss: Place a stop below 120.56 to protect against further downside if the price breaks below support.
Bearish Scenario:
Entry: A short position can be taken if NVDA fails to break above the 121.83 resistance and reverses lower. Alternatively, short on a break below 120.65.
Exit: Targets would be 114.88 as the first support level, and then 112.78 as the second if bearish momentum continues.
Stop Loss: Place a stop above the 121.83 resistance level to minimize risk if NVDA reverses unexpectedly.
4. Indicators Analysis:
Trendlines: The price has broken below a descending trendline, indicating that bearish momentum is still in play.
Volume: Volume seems to pick up during down moves, reinforcing the bearish bias. Look for an increase in volume near support for signs of potential accumulation or capitulation.
5. Overall Sentiment:
Bearish Bias: With the price below the trendline and unable to reclaim key levels, the overall sentiment appears bearish for now. There’s a higher probability of a further move lower unless 120.65 support holds.
Bullish Potential: If 120.65 holds and NVDA manages to break above 121.83, this could lead to a short-term bullish reversal.
Suggestion:
Watch for price action around 120.65 to determine if there’s a breakdown or a bounce. A breakdown could signal more downside, while a hold and reversal could lead to a rally toward resistance.
