NVIDIA (NVDA) Technical Analysis and Forecast for August 23, 20Key Support and Resistance Levels:
Resistance:
$131.00: This is a significant resistance zone. We’ve seen strong selling pressure here, which aligns with the volume profile indicating heavy trading activity around this level. Breaking above $131 could open the door to higher levels.
$125.83: A near-term resistance level that has acted as a ceiling over the last few sessions.
Support:
$124.52: This is immediate support. The price has bounced off this level before, and it's crucial for bulls to hold this to avoid a deeper pullback.
$118.00: If $124.52 fails, $118.00 is the next key support. This level is critical as the volume profile suggests less trading activity below this, meaning a break here could lead to a swift decline.
Trend Analysis:
The uptrend has been broken, as evidenced by the price falling below the ascending trendline. This break indicates a potential shift in sentiment from bullish to bearish unless the price quickly recovers above it.
MACD is showing signs of a bullish crossover on the hourly chart, hinting that a short-term bounce could be on the horizon. However, confirmation is needed, and this should be watched closely.
Entry and Exit Strategies:
Bullish Setup:
Entry: Consider entering around $124.52 if it shows strong support, especially with a MACD crossover confirming bullish momentum.
Targets:
First target: $125.83, where profit-taking is likely.
Second target: $131.00, if the momentum continues.
Stop-Loss: Place a stop just below $124.00 to minimize risk.
Bearish Setup:
Entry: If $124.52 breaks down with strong volume, a short position could be considered.
Targets:
First target: $122.00, an area of minor support.
Second target: $118.00, where stronger support lies.
Stop-Loss: Set a stop just above $125.83 to avoid being caught in a short squeeze.
News Impact and Market Sentiment:
with Fed Chair Jerome Powell speaking at Jackson Hole tomorrow, the market could see increased volatility. Traders should be prepared for potential market-moving headlines, which could impact NVDA’s price action.
Forecast for Tomorrow:
Tomorrow’s trading will likely be influenced by broader market sentiment and any further news or developments. If the market reacts negatively to any comments from the Fed, we could see NVDA testing lower supports. However, if the sentiment is positive, and the MACD crossover gains strength, NVDA could attempt to reclaim higher resistance levels.
Summary: NVIDIA is at a pivotal point. Keep an eye on the $124.52 support and the $131.00 resistance as key levels for tomorrow's trading. The stock could go either way depending on market sentiment.
