NVIDIA Plan for next 3 month!!
The chart shows NVIDIA Corporation in a consistent downtrend with Heikin Ashi candlesticks on a daily timeframe, and it is testing significant support levels. The critical observation from the chart is the downward trajectory towards a future buying zone projected between $75 and $80. This is visualized by the yellow line, which indicates anticipated movements and potential buying opportunities in this lower price range.
Thought Process:
Trend Identification: The prevailing downtrend is clear, with lower highs and lower lows being established. The support level at $116 is currently being tested, and if this breaks, the next significant support and target buying area is between $75 and $80.
Candlestick Patterns: Continuous red candlesticks indicate a strong selling pressure. Watching for any transition or stabilization in these patterns could hint at temporary reversals or slowing momentum.
Volume Analysis: Increasing volume during price declines typically confirms the strength of the downtrend. Observing volume changes as the price approaches the $75-$80 range will be key to determining the strength of potential buy signals.
Trade Strategy:
Entry Point: The major buying region is identified around $75-$80, where historical support and the projected path suggest a significant rebound could occur.
Profit Targets: Upon entering at this lower range, initial profit targets might be set at a retracement to $116, with further targets near $132 if the price recovers strongly.
Stop Loss: A stop loss should be considered below $75, to protect against the possibility of an unanticipated continued decline.
Rationale: This strategy is based on the anticipation of a significant bounce from the $75-$80 support zone, informed by historical price levels and current trend analysis. By entering at these lower levels, the potential for a favorable risk-reward ratio increases, given the historical volatility and price recoveries of the stock.
Risk Considerations:
Extended Downtrend: Continued bearish market sentiment or negative industry news could push prices lower than expected.
Market Conditions: Broader market trends will significantly influence the stock's behavior, necessitating continuous monitoring of market conditions and sentiment.
This trading plan offers a structured approach to capitalize on the anticipated low-price opportunity, with clear risk management tactics in place to safeguard investments while aiming for strategic entry points based on thorough market analysis and price action.
Thought Process:
Trend Identification: The prevailing downtrend is clear, with lower highs and lower lows being established. The support level at $116 is currently being tested, and if this breaks, the next significant support and target buying area is between $75 and $80.
Candlestick Patterns: Continuous red candlesticks indicate a strong selling pressure. Watching for any transition or stabilization in these patterns could hint at temporary reversals or slowing momentum.
Volume Analysis: Increasing volume during price declines typically confirms the strength of the downtrend. Observing volume changes as the price approaches the $75-$80 range will be key to determining the strength of potential buy signals.
Trade Strategy:
Entry Point: The major buying region is identified around $75-$80, where historical support and the projected path suggest a significant rebound could occur.
Profit Targets: Upon entering at this lower range, initial profit targets might be set at a retracement to $116, with further targets near $132 if the price recovers strongly.
Stop Loss: A stop loss should be considered below $75, to protect against the possibility of an unanticipated continued decline.
Rationale: This strategy is based on the anticipation of a significant bounce from the $75-$80 support zone, informed by historical price levels and current trend analysis. By entering at these lower levels, the potential for a favorable risk-reward ratio increases, given the historical volatility and price recoveries of the stock.
Risk Considerations:
Extended Downtrend: Continued bearish market sentiment or negative industry news could push prices lower than expected.
Market Conditions: Broader market trends will significantly influence the stock's behavior, necessitating continuous monitoring of market conditions and sentiment.
This trading plan offers a structured approach to capitalize on the anticipated low-price opportunity, with clear risk management tactics in place to safeguard investments while aiming for strategic entry points based on thorough market analysis and price action.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.