$NVDA Option Traders Dream? Could NASDAQ:NVDA get trapped in the horizontal pattern for the next 7 months before breaking out? If so, then it could be an Option trader's paradise.
NVDAD trade ideas
Nvidia WarningYES, another one of my Nvidia reminders/warnings!
Nvidia can easily go down 40 to 50% depending on how fast the correction un folds.
Of course, astute investors & traders understand what is happening here...
NVDA: Bullish Trend with Short-term Risk🔥 LucanInvstor's Strategy:
🩸 Short: Below $131.06, targeting $128 and $120. The MACD shows weak positive momentum, and a breakdown below support could trigger a pullback.
🩸 Long: Above $136.81, targeting $140 and $145. The price is above both the 9-day and 200-day EMAs, suggesting a continuation of the bullish trend, but resistance at $136.81 needs to be broken.
🔥 LucanInvstor's Commands:
🩸 Resistance: $136.81 — A critical resistance level; a break above this could trigger further upside.
🩸 Support: $131.06 — A key support level; a breakdown below this could lead to further declines.
Nvidia is in a strong bullish trend, confirmed by the MACD and EMAs. A breakout above resistance could lead to significant gains, while a breakdown below support may cause short-term weakness.
👑 "Clarity in strategy ensures victory."
NVDA - Bearish Pressure Can Turn Into Bullish OutcomeBullish on NVDA. My thought is that the stock will be taking some pressure this week. Bears are having their time. With some possible price movement trending upwards in the coming day after going down some.
I see NVDA as a strong company who continues to surprise.
5 Contracts Purchased @ 11:00 AM - Today.
NVDA - JAN 24 - $140 CALLS - Per contract price = $0.97/Contract.
$495 USD Position.
Let us see where the wave takes this one!!
Bullish.
Happy New Year !!
Major Price Movement Incoming for NVDA!Signalist has detected a precise pattern in NASDAQ:NVDA trading activity, signaling that a substantial price movement is imminent. This isn’t a random fluctuation—it’s a carefully analyzed precursor to a significant market event.
📅 What to Expect:
⌛ Timeline: Anticipate a major move within the next 1 to 4 upcoming 3-hour candles.
📈 Monitor the Charts: Keep an eye on NVDA’s price action over the next few candles.
Prepare Your Strategy: Whether you’re bullish or bearish, have your trading plan ready to capitalize on the move.
🔍 Observations:
Delta (+385.39K):
This is a very large positive delta, indicating significant buying dominance during this candle.
Buyers were much more aggressive than sellers, as reflected by the delta and overall volume distribution.
Total Volume (1.73M):
This is an extremely high volume, suggesting the candle occurred during a highly active session (possibly a news-driven event or significant market participation).
High volume with a strong positive delta typically signals strong buying interest and momentum.
Volume Distribution:
Buy Volume (1.06M) overwhelms Sell Volume (672.02K) .
Significant buy imbalances are evident at all levels:
At the mid-level: 451.73K (buy) vs. 271.14K (sell).
At the lower level: 71.42K (buy) vs. 65.81K (sell).
This shows that buyers were active across all price ranges, with sellers unable to contain the upward momentum.
Candle Structure:
The candle is green, closing near the top of its range, indicating strong upward pressure.
This suggests that buyers not only dominated but also maintained control throughout the session.
High-Probability Outcome:
Given the data, the high probability outcome is a continuation of bullish momentum:
The high positive delta, strong buy volume, and green candle closing near the highs indicate that buyers are firmly in control.
With such overwhelming buying pressure, the market is likely to see further upward movement in subsequent candles.
Market Analysis: NVDAMarket Analysis: NVIDIA
Over the past three to four months, NVIDIA Corporation ( NASDAQ:NVDA NVDA) has demonstrated solid performance, with its stock price increasing by approximately 4.96%. This steady growth reflects the company’s strong position in the technology sector, driven by its dominance in GPU production, AI advancements, and cloud computing.
The release of its latest financial results and continued demand for AI-related technologies have kept investor confidence high. However, market volatility and broader concerns in the tech sector may have tempered the pace of its gains. Overall, NVDA remains a key player to watch, especially as AI adoption accelerates globally.
Why has the title been stuck in the same range for over 90 days?
Let's always keep in mind that NVDA, from the low it reached in 2022, has now experienced an increase of about 1200%, so a sideways phase is completely normal, if not expected!
Let’s take a look at the chart since May 25, 2023 (599 days // 317%)
We can observe how the uptrend has always been accompanied by a very important trendline, which has now been retested and invalidated, all marked by a particularly unfavorable signal: a candle that opens higher, setting a new all-time high, and closes in the negative.
Nonetheless, NVDA has consistently exhibited a similar pattern – large uptrends, leaving gaps open almost everywhere, and long sideways phases, which usually lead to a breakout driven by earnings announcements.
Let’s look at the examples the market provides us:
We have the first upward move (1st), driven by earnings results that cause a gap up of about 20%, followed by a wide trading range in which the price remains trapped. Later (2nd), a strong bullish phase, and finally another sideways phase (3rd), all with very wide ranges!
Now, the current zone is a difficult one to analyze because initially it seemed to be a bullish zone, but now appears to be more of a consolidation…
So, the situation we find ourselves in now is another moment for a buy or a trend change? Let us know your thoughts in the comments!
NVDA: Buy ideaOn NVDA, when we look at the chart with the tracing of the resistance line and the support line, we see a bearish trend with a succession of many red candles and accompanied by many red volumes as well.
Furthermore, this configuration of the chart signals to us a high probability of a reversal of the trend, namely the bullish one. This upward trend will be confirmed by the strong break of the Vwap indicator by a large green candle and followed by a large green volume. Therefore, we can enter a position as soon as the second green candle appears for greater confidence.
NVDA LONG - buy 130-132 targeting 140+THE stock of 2024 has shown some weakness for the past few days, and some news made to trade all the way down for 130.
We all know that this stock is a pray for the bulls, 128-132 is a major AOI.
Yesterday we saw a clear rejection as buyers came in on ~130 level, with the Nasdaq futures (NQ) gaining huge momentum near the close.
this flow can take this asset back above 140, and today's pre market is already showing signs for this.
stop bellow 128-129, Best of luck.
BEHNVN
NVDA Versus AMD Year To DateWith so many traders being convinced that AMD will outperform NVDA in 2025, it should be fun to keep a running tally.
NVDA Short on Regression Break after a False BreakoutNVDA has broken the uptrend on the regression break after a false breakout long.
NAS100 in on a downtrend and 4 of the magnificent 7 are now in a downtrend.
NVIDIA - The best performing copany ,enjoy a Christmas RallyHi guys, we are looking into NVIDIA, the world's most successful company which has had a tremendeous year, looking to close it with fantastic results.
Currently we are sitting in a low level oversold area on the RSI , which gives us a technical overview of forming an Ascending Channel from here onwards. Currently the Interest Rate decision by the FED will give us a necesasry boost to uplift the prices from this point forwards.
Entry on market open: 134.03
Target 1: 140.98
Target 2: 150.78
As always my friends happy trading!
P.S. If you have questions or inquiries about one of my existing set-ups or personal questions / 1 on 1 sessions consider joining my channel so you can follow up with me in private!
NVDA - Up trend ?NVDA - Up trend in a rising channel + Above the average line 150. Only an idea and not a recommendation for trading
What’s Next for NVDA: $142 or $123?Good morning Trading Family
Here’s the game plan: if NVDA moves above $133.50, we could see it climb to $134.50, then correct back down to $123. If it breaks $129.33, it might drop to the $123 range. But if it pushes past $137, we could see it head toward $142.
This Sunday, I’m hosting a webinar on how emotions can hurt your trading and how to take control of your mindset for better results.
Send me a message or check out my profile for details. If this added value to your trading, like, comment, and share it with someone who needs it.
Kris/Mindbloome Exchange
Trade What You See
NVDA morning analysisTechnical analysis for NVDA.
Price never tagged median lines of either bullish pitchfork drawn, implying price should be pulled down towards 100.95 and 90.69. If correct, would be in line with a C wave to complete a primary wave 4 expanded flat.
NVDA: Sell ideaSell idea on NVDA on a time unit of 15 minutes as you can see on the chart because we have the breakout with force the vwap indicator and the support line by a big red candle.
How Do Traders Identify Overbought and Oversold Stocks?How Do Traders Identify Overbought and Oversold Stocks?
Identifying overbought and oversold stocks is a key part of technical analysis for traders. These conditions occur when a market’s price moves to extremes—either too high or too low—compared to its recent performance. By recognising these signals, traders can spot potential turning points in the market. This article explores what overbought and oversold stocks are, how to find them using technical indicators, and the risks involved in trading them.
What Is an Oversold Stock?
Oversold stocks are those that have experienced a significant price decline, often beyond what might seem reasonable based on their underlying value. This often happens when market sentiment is overly negative, even if the company’s fundamentals remain solid.
Several factors can lead to a stock becoming oversold. For instance, bad news about a company, such as a missed earnings report or legal troubles, can cause investors to sell off shares quickly. Broader market events, like economic downturns or changes in industry regulations, can also drive prices down across the board. Sometimes, even strong stocks get caught up in these waves of negativity.
The concept of overselling isn’t just about price falling, though—it’s about the potential for a reversal. When stocks fall too fast, too far compared to their actual financial performance or growth potential, this is where traders look for opportunities, analysing whether the market is poised for a potential recovery.
What Is an Overbought Stock?
Overbought stocks are those that have risen sharply in price, often to a point where they may no longer reflect the stock’s true value. When a stock is considered overbought, it means there’s been a lot of buying activity, pushing the price higher than what its fundamentals might justify. This often happens when market sentiment is extremely positive, driving demand even when shares may already be trading at high levels.
Several factors can lead to an overbought market. Sometimes, positive news about a company—such as strong earnings, new product launches, or positive analyst reports—can spark a wave of buying. Market-wide optimism, particularly during bullish phases, can also lead to an overbought stock market. Speculative buying, where traders hope to capitalise on short-term price movements, can further inflate the price.
Being overbought doesn’t necessarily mean the stock is due for an immediate correction, but it does suggest that the price may have gone too high, too quickly. The most overbought stocks are often viewed as being in a vulnerable position for a potential pullback, especially if there isn’t enough underlying support from the company’s financial health or growth prospects. Traders consider this an opportunity to sell stocks at potentially good prices.
How Traders Find Oversold and Overbought Stocks with Indicators
Traders use technical indicators to determine whether a stock might be undervalued (oversold) or overvalued (overbought) based on its price action. These indicators allow traders to assess whether a price movement has gone too far in one direction.
Technical indicators are tools that use historical price and volume data to measure things like price momentum and trend strength. When it comes to finding overbought or oversold stocks, momentum oscillators play a key role.
These oscillators measure the speed and magnitude at which an asset’s price is changing. If a market has been rising or falling too quickly, it could be a sign that it’s either overbought or oversold. Also, if a stock has moved too far away from its typical price range, it signals a possible reversal. Traders rely on indicators to determine when the price may be at an extreme, helping them find entry or exit points based on market conditions.
Now, let’s break down some of the most popular indicators used for this purpose.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is one of the most widely used overbought and oversold indicators. The RSI is a momentum indicator that gauges how fast and how much a stock's price is moving. It gives traders a visual signal of when a stock may have been pushed too far in either direction.
RSI compares the magnitude of recent gains to recent losses to assess whether a stock is overbought or oversold. The indicator ranges from 0 to 100 and is typically used to evaluate whether a stock is moving too fast in either direction. If the RSI falls below 30, the stock is considered oversold, suggesting it could be undervalued and due for a bounce. If the RSI rises above 70, the stock is seen as in an overbought zone, potentially signalling a price correction on the horizon.
While RSI can be helpful, it’s essential to look at it in the context of the broader market. For example, in a strong bull market, a stock might remain overbought for an extended period. Similarly, during a downturn, stocks can stay oversold longer than expected.
Stochastic Oscillator
The Stochastic Oscillator is another momentum indicator. It compares a stock's closing price to its price range over a certain period. The idea behind this indicator is that in an uptrend, prices will close near their highs, and in a downtrend, prices will close near their lows.
The Stochastic Oscillator helps traders identify when a stock’s price has potentially moved too far in either direction relative to its recent range. It’s similar in principle to the RSI, except the Stochastic is considered more useful for detecting shorter-term reversals.
It’s especially useful for identifying overbought and oversold conditions because it moves within a range — between 0 and 100 — similar to the RSI. The Stochastic Oscillator is made up of two lines: %K, which is the primary line, and %D, a moving average of %K. When these lines are above 80, the stock is considered overbought. When they are below 20, it’s considered oversold.
Given its sensitivity, it’s common to see the Stochastic signals a market is overextended for a longer period when there’s a strong trend. This makes it more prone to false signals than the RSI or MACD indicator and typically more useful for trading pullbacks in a broader trend.
MACD (Moving Average Convergence Divergence)
The Moving Average Convergence Divergence (MACD) is another popular overbought and oversold indicator. Unlike the RSI, which focuses primarily on oversold vs overbought levels, MACD is more about trend strength and its direction. It shows the relationship between two moving averages of an asset’s price and can help identify potential shifts in momentum.
The MACD consists of two lines: the MACD line (which is the difference between the 12-day and 26-day exponential moving averages) and the signal line (the 9-day moving average of the MACD line). When the MACD line crosses above the signal line, it indicates a potential bullish reversal. When it crosses below, it signals a bearish reversal.
Since the lines are based on the difference between two EMAs, it’s also possible to gauge an overbought/oversold stock by examining the distance of the lines between their current values and the 0 midpoint. If the lines are far away from 0 and their historical averages, it could indicate a stock is overbought or oversold.
However, generally speaking, MACD is less about pinpointing specific overbought/oversold levels and more about identifying when momentum is shifting. A rapid crossover of the lines, especially after a strong move, can signal that a reversal might be near.
Considerations When Using Momentum Indicators
While momentum indicators like the RSI and MACD can be useful for spotting overextended stocks, there are a couple of key points to keep in mind when using these oversold and overbought indicators:
Divergences
A divergence occurs when the price moves in the opposite direction to the indicator. For example, if a stock is making higher highs but the indicator is making lower highs, this can signal weakening momentum and a possible reversal. Divergences offer another layer of insight, so it's worth paying attention to them alongside other factors.
Timeframes
Different timeframes can produce different results. An indicator that shows a stock is oversold on a daily chart might not show the same on a weekly chart. It's important to choose the right timeframe for your trading strategy, whether short-term or long-term. Generally, many traders take a top-down approach, allowing higher timeframe signals to better inform your analysis on lower timeframes.
Risks of Trading Oversold and Overbought Stocks
Trading oversold and overbought stocks can be appealing, as these conditions often suggest a potential reversal in price. However, there are some risks to consider when relying on these signals. A few important points to bear in mind include:
- False Signals: Just because a market is oversold or overbought doesn’t guarantee a reversal. Prices can continue to decline or rise despite what momentum indicators suggest. Traders need to be cautious about assuming that every extreme condition will result in a price correction.
- Extended Trends: In strong bullish or bearish trends, a stock can remain in overbought or oversold territory for longer than expected. This can lead to premature trades, where investors get in too early or expect a reversal that doesn’t come for a while.
- Market Sentiment: Sometimes, external factors like news events or broader economic conditions can overpower technical indicators. If there’s overwhelming optimism or pessimism in the market, a stock may continue in its overbought or oversold condition for longer than anticipated.
- Lack of Confirmation: Relying on a single indicator can be risky. It’s common to use multiple indicators or combine technical and fundamental analysis for a more balanced view. There may be no other supporting signals when a stock is oversold, meaning the trade carries higher risk.
The Bottom Line
Understanding overbought and oversold stocks, along with the indicators used to identify them, can help traders spot potential market opportunities. While these conditions may signal a reversal, it’s important to recognise there is no one best overbought and oversold indicator and use multiple tools for confirmation. Ready to apply these insights? Open an FXOpen account today to access more than 700 markets, including a huge range of stock CFDs, and four advanced trading platforms.
FAQ
What Is Overbought and Oversold?
Overbought and oversold are terms used to describe extreme price movements in markets. A stock is considered overbought when its price has risen rapidly and above its underlying value, which potentially makes it overvalued. It’s oversold when the price has fallen sharply and below its underlying value, which makes it undervalued. These conditions can signal that a price reversal may be coming, though they don’t guarantee it.
What Does It Mean for a Stock to Be Overbought?
The overbought stock meaning refers to a stock that has increased quickly and is potentially trading higher than its actual value. This often occurs due to strong demand or market optimism. Overbought conditions might signal that the price is at risk of a pullback.
What Does It Mean When a Stock Is Oversold?
The oversold stock meaning refers to a stock that has dropped significantly and may be below its true value. This often happens when there’s been excessive selling, and it could suggest that its price is due for a rebound.
How Can You Find Oversold Stocks?
Traders often use technical indicators like the Relative Strength Index (RSI) to find the most oversold stocks. An RSI reading below 30 typically suggests that a stock is oversold and may present a buying opportunity. Other indicators, like the Stochastic Oscillator, are also commonly used to identify oversold conditions.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NVDA Technical Analysis and GEX Options Trading InsightsTechnical Analysis:
1. Current Price and Trend:
* NVDA is trading at $135.62.
* The stock appears to be consolidating within a range after a recent decline from its highs near $153.74.
* The MACD indicates bearish momentum but shows signs of flattening, suggesting potential exhaustion of the downtrend.
2. Support and Resistance Levels:
* Immediate Resistance: $143.88 (key resistance zone and prior breakout level).
* Immediate Support: $134.13 (near-term support from recent price action).
* Additional Key Levels:
* Resistance at $153.74 (local high).
* Support at $126.35 (major support area).
3. Price Action:
* The stock is trading close to its immediate support at $134.13. A break below this level could trigger a move towards $130.00 or lower.
* If the price holds above $134.13 and breaks $143.88, it may attempt a recovery toward $153.74.
4. Volume Analysis:
* Recent volume has decreased, indicating a lack of strong conviction in either direction.
5. Outlook:
* A breakdown below $134.13 could accelerate bearish momentum, while a sustained move above $143.88 might attract buyers.
GEX Options Insights:
1. Key GEX Levels:
* Positive GEX/Call Resistance: $153.00 - $154.00 (significant resistance level where options activity indicates high call positioning).
* Gamma Wall: $144.00 (highest positive NET GEX, potential resistance zone).
* Put Support: $130.00 (highest negative NET GEX, potential strong support level).
2. Options Metrics:
* IVR (Implied Volatility Rank): 17.2 (low), indicating less expensive options.
* IVx Average: 46.5 (moderate volatility).
* Call Activity: 15.4% of GEX indicates more calls are being traded, supporting potential bullish sentiment.
Trade Setups:
1. Bullish Scenario:
* Entry: Above $143.88.
* Target: $153.00 - $154.00.
* Stop-Loss: Below $140.00.
2. Bearish Scenario:
* Entry: Below $134.13.
* Target: $130.00 - $126.35.
* Stop-Loss: Above $137.00.
3. Neutral Strategy (Options):
* Utilize iron condors or credit spreads around key GEX levels ($130.00 - $154.00) to capitalize on range-bound movement.
Conclusion:
* NVDA is at a critical juncture. Traders should monitor $143.88 for a potential breakout or $134.13 for a breakdown. Pre-market price action and volume will be essential to confirm the direction.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own due diligence and manage risk responsibly. For questions, please feel free to contact me directly.
Range on the WeeklyIt is possible that NVDA is in a distribution phase, and a breach below to one of the Demand levels below may verify that. The asset is currently in a range and the price is at the bottom of the range. The past resistance 132.26$ area is now the support a breach below that may usher in bearish activity. If we are in a distribution phase hopefully the mark down will be minor. However, it is in a range, and it is in the bottom if the range there is a possibility that price may return to the 149 area the range top. Have a nice day be careful.
Nvidia has expressed strong criticism, SHORTNvidia has expressed strong criticism of a plan by the Biden administration to impose new restrictions on the export of AI chips. The company argues that these restrictions, aimed at preventing China's military advancements, could harm the U.S. economic competitiveness and benefit America's adversaries. Nvidia urges the outgoing administration to delay implementing the policy until after the newly elected President Trump takes office, fearing unnecessary economic setbacks and the loss of U.S. technological leadership.
NVIDIA Possible Outlook Next week 1-13-25This stock has still upside potential. As for right now this was a much needed retest to continue to the upside. If we see a closure below the last weekly zone. We could expect a further drop down to show us support but not currently looking for that just yet. Just keeping it mind.
NVDA: Bullish Trend and Potential Upside🔥 Potential Price Targets:
🩸 Near-term Goal: $139.51 (1-2 months)
🩸 Long-term Goal: $144.22 (3-4 months)
🔥 LucanInvstor's Strategy:
🩸 Short: Below $133.70, targeting $130 and $125. The bullish momentum is fading; a break below key support could lead to further downside.
🩸 Long: Above $139.51, targeting $144.22 and $150. The positive MACD and price above both the 9-day and 200-day EMAs indicate strong upside potential.
🔥 LucanInvstor's Commands:
🩸 Resistance: $144.22 — A critical resistance point; a break above this could lead to a significant rally.
🩸 Support: $133.70 — A key level for bulls to defend; a breakdown could trigger downside movement.
NVIDIA is currently in a bullish setup, with strong momentum confirmed by the MACD and the price trading above key EMAs. A breakout above resistance could see significant upside, while a breakdown below support would suggest a bearish reversal.
👑 "Precision is power."
High Wave CandleNVIDIA closed recently with a candle with wicks that could be compared to High Wave Candle. Per literature this candle represents indecision in the market. This particular candle is at a support, and per financial texts, if the subsequent candle closes above the high of the High Wave Candle, there might be bullish activity. Also, this candle has also retraced to trendline another possible confluence. However, everything does not normally go by the textbooks and also fundamentals act like invisible forces that shake the chart and also we have the concepts of liquidation and fake outs, which at times goes against normal price action principles. Please be careful and if you do not mind share your thoughts below and have a great day.
NVDA - why to short hereNVDA has been the most popular stock past 2 years
right now signs of weakness are present as evident by tow higher high from NOV high. Yesterday move was 4 percent which bring NVDA right to the resistance. I believe that yesterday move was a bull trap and not a true wedge breakout. I will be a seller at these levels ,, however with lost of events coming i will be buying hedge too
