NVDA Approaching Crucial Levels! Trade Setups for Jan. 3, 2024NVDA Approaching Crucial Levels! Trade Setups You Need to Know 🚀"
* Current Trend:
NVDA is consolidating within a descending channel on the 1-hour chart, showing a range-bound movement. On the daily chart, it appears to be forming lower highs, indicative of a weakening uptrend with potential bearish continuation.
* Key Observations from Indicators:
* MACD (1-hour): Signals neutrality with no clear crossover, reflecting ongoing consolidation.
* Stochastic RSI (1-hour): Trending higher, suggesting a short-term recovery from oversold levels.
* Volume: Diminished during the recent pullback, indicating a lack of conviction from sellers, but no significant buying pressure yet.
Key Support and Resistance Levels (Daily Chart):
* Support Levels:
* $134: High Volume Node, with significant PUT activity in the GEX data.
* $132: Immediate support with a noticeable PUT wall.
* $130: Major support zone and the third PUT wall per GEX insights.
* Resistance Levels:
* $138: Immediate resistance and the highest positive GEX zone (CALL resistance).
* $140: Next significant resistance, aligning with a second CALL wall.
* $143-$144: Major resistance, marked by a strong CALL wall and historical rejections.
GEX Insights:
* Gamma Exposure (GEX):
* Positive GEX Zones: Above $138, CALL activity increases significantly, indicating a strong resistance level for upward movement.
* Negative GEX Zones: Below $134, gamma exposure becomes negative, suggesting increased downside volatility.
* Options Activity:
* IVR (Implied Volatility Rank) is at 20.2%, indicating relatively low implied volatility.
* A low CALL/PUT ratio reflects bearish sentiment, with sellers dominating near $132-$134.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $138.
* Target: $140 (initial), $143-$144 (secondary).
* Stop-Loss: Below $134 to avoid downside risk.
Bearish Scenario:
* Entry: Below $134.
* Target: $132 (initial), with potential extension to $130.
* Stop-Loss: Above $138 to limit upside risk.
Conclusion:
NVDA is at a pivotal point, with $134 serving as a critical support level. Watch for a breakout above $138 for bullish momentum or a breakdown below $134 for bearish continuation. Volume and GEX levels should guide your directional bias.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and trade responsibly.