NVDA: Critical Inflection Point!The daily chart of NVDA shows a complex technical scenario, highlighted by the presence of a potential Head and Shoulders (H&S) pattern frustration point. The H&S pattern is a bearish reversal pattern, but the price action suggests that it may not have completed, leading to the current consolidation phase. This frustration point is marked by the resistance line at $128.12, which NVDA has struggled to break through consistently.
The daily chart also shows a trendline support, which has been respected multiple times, providing a strong upward momentum. The 21-day EMA serves as an additional support level. The recent price action indicates a consolidation phase between $128 resistance and the trendline support, creating a tight trading range. Traders should watch for a breakout to determine the next significant move.
On the weekly chart, NVDA has been in a strong uptrend, with the 21-week EMA providing support. The main support level is identified at $118.04, a crucial level that has been tested and held in recent weeks. This level coincides with the neckline of the potential H&S pattern seen on the daily chart, making it a critical support zone.
In summary, NVDA is at a critical juncture with consolidation between key levels. Traders should monitor the $128 resistance and the main support levels closely for breakout or breakdown signals to determine the next major move. The overall trend remains bullish, but caution is warranted given the potential bearish H&S pattern and the current consolidation phase.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
