NVDA Breakout Alert: TA for Nov. 20, 2024NVDA has been exhibiting a strong recovery from its recent lows, breaking out of a descending trendline on the hourly timeframe. With bullish momentum building, this stock is primed for both scalping and swing trade setups. In this analysis, we’ll dive into the market structure, supply and demand zones, price action insights, and trading opportunities to capitalize on NVDA’s movement.
Market Structure Overview
* Trendline Breakout: NVDA has decisively broken out of a descending trendline, signaling potential upside.
* Current Price Action: Trading at $149.68 with strong bullish candles and volume confirming the breakout.
* Volume Analysis: Increased buying volume during the breakout phase, suggesting institutional interest.
Supply & Demand Zones
* Demand Zone (Support): $137.06 - $140.32. This area has historically seen strong buying interest and could act as a safety net for pullbacks.
* Supply Zone (Resistance): $149.95 - $155.00. This region is the next significant hurdle NVDA must clear to confirm a bullish continuation.
Key Levels
* Support Levels: $137.06, $140.32.
* Resistance Levels: $149.95, $155.00.
Order Blocks
* Bullish Order Block: $137.00 - $138.50. Watch for potential rebounds if NVDA retraces to this level.
* Bearish Order Block: $149.50 - $150.00. This area may see selling pressure and could be a profit-taking zone for scalpers.
Technical Indicators
* 9 EMA & 21 EMA (Hourly): The stock is trading well above these levels, indicating a strong bullish trend.
* MACD (Hourly): Bullish crossover with increasing histogram bars, signaling momentum.
* RSI (Hourly): Hovering near 70, indicating strength but watch for overbought conditions.
Scalping Plan
* Entry: Look for a pullback to the $147.00 - $148.00 range with confirmation from bullish candles.
* Exit: Target $149.50 initially, then $150.00 for extended profits.
* Stop-Loss: Tight stop at $146.50 to limit risk.
* Game Plan: Focus on momentum plays near breakout levels. Use high-volume candles as confirmation for entries.
Swing Trading Plan
* Entry: Buy on a retracement to the $140.00 - $143.00 demand zone.
* Exit: Partial profit at $149.95, with the final target at $155.00.
* Stop-Loss: Below $137.00 to avoid deeper pullbacks.
* Game Plan: Monitor for continuation patterns like flags or pennants above $149.00 to add to positions.
Projection
NVDA’s breakout is supported by strong technicals and volume. If it sustains above $149.95, it is likely to test $155.00 in the coming sessions. Failure to hold $147.00 may result in a retest of the $140.00 support zone, offering another buying opportunity.
My Thoughts
NVDA appears poised for further upside in the short term, but caution is warranted near key resistance zones. Scalpers should watch for quick reactions near $149.50, while swing traders can benefit from the broader trend. Stick to the plan, respect your stops, and let the market guide your moves.