NVDA on the Rise: Key Levels and Insights for Potential GainsTechnical Analysis for NVDA (November 8, 2024)
The recent rally in the stock market has provided NVDA with a strong upward momentum. Looking at the 1-hour chart, let's break down some critical levels and indicators that might help guide your trading decisions for tomorrow.
Key Observations:
Trend and Momentum:
NVDA is trending upward with the price staying consistently above both short-term (15 EMA) and medium-term (likely the 50 EMA) exponential moving averages. This alignment of EMAs is a positive signal, showing that bulls have control and momentum is on NVDA’s side.
Volume is relatively strong, indicating sustained interest in this upward movement. However, watch for volume to confirm breakouts or reversals.
Price Levels to Watch:
Resistance: The immediate resistance lies near $149.50 (current ask level). Breaking through this with high volume could signal further upside, possibly pushing toward $152-$154, where historical resistance could come into play.
Support Levels: Immediate support lies around $139.86, followed by a stronger level around $135.30. These levels might act as a bounce point if the price pulls back. If NVDA falls below $135, it could potentially retest the lower $132 range, which was the recent low.
MACD and Momentum Indicators:
The MACD histogram shows fading momentum, suggesting potential consolidation or a mild pullback. If the MACD lines cross down, this could be an early signal for a short-term correction.
However, if momentum picks up, this would support a continued bullish run, especially if it’s accompanied by an increase in volume.
Price Action Strategy:
Bullish Scenario: If NVDA breaks above the $149.50 resistance with strong volume, this could lead to a potential rally toward $152 and beyond. Entering on a pullback after a breakout could offer a safer entry with reduced risk.
Bearish Scenario: If NVDA drops below the $139.86 support, it might signal a short-term pullback, potentially providing a buying opportunity near $135.30 if bullish sentiment remains strong.
Suggested Approach:
For Bulls: Look for a breakout above $149.50 with volume confirmation for a potential continuation play.
For Bears: Watch for a failure at $149.50 or a break below $139.86 as signs of a potential pullback, which could provide buying opportunities at lower levels.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a financial advisor before making investment decisions.
