NVDA at a Crossroads: Prepare for the Next Big Move. Dec, 3NVDA is setting up for an exciting trading week, with key technical levels aligning for potential volatility. Whether you're a scalper looking for quick gains or a swing trader aiming to ride the trend, this analysis breaks down everything you need to know. Let’s dive into price action, key zones, and actionable strategies to capitalize on NVDA's next move.
Technical Analysis and Price Action
1. Trend Overview:
NVDA is currently in a consolidation phase after bouncing from the $131.80 support level. The stock has formed higher lows, hinting at potential bullish momentum. However, resistance near $140.50 is keeping prices capped. The MACD is showing a possible bullish crossover, indicating momentum might favor the upside.
2. Key Support & Resistance Zones:
* Support Levels:
* Primary: $135.72 (key pivot zone).
* Secondary: $131.80 (recent swing low).
* Resistance Levels:
* Immediate: $140.50 (sellers have stepped in here).
* Strong Resistance: $152.85 (recent high).
3. Liquidity Zones and Order Blocks:
* Significant buying interest observed near $135.72. This area serves as a strong demand zone.
* Sellers remain active at $140.50, creating a short-term supply zone.
Game Plan and Playbook
Scalping Strategy
* Entry: Look for a breakout above $140.50 with confirmation (strong volume and sustained price action).
* Target 1: $143.69.
* Target 2: $152.85.
* Stop Loss: $138.00 (below the breakout level).
* Alternative Play: If the price rejects $140.50, short with a target of $135.72.
Swing Trading Strategy
* Bullish Setup:
* Entry: On a pullback to $135.72 with bullish confirmation (candle patterns or MACD crossover).
* Target 1: $143.69.
* Target 2: $152.85.
* Stop Loss: $131.50.
* Bearish Setup:
* Entry: If the price breaks below $131.80 on heavy volume.
* Target 1: $128.00.
* Target 2: $120.00.
* Stop Loss: $133.00.
Where NVDA Could Head Next
The current setup shows NVDA trading in a wedge pattern, which often precedes a breakout. A move above $140.50 could signal a bullish continuation to $152.85, while a breakdown below $135.72 could retest $131.80 or lower. Monitor volume closely to validate the breakout or breakdown.
Key Indicators to Watch
* MACD: Watching for a confirmed bullish crossover to signal momentum.
* RSI: Currently neutral but nearing overbought levels, which could lead to a reversal if not accompanied by volume.
* Volume: Critical for validating breakouts; weak volume could lead to fakeouts.
My Thoughts and Suggestions
NVDA is at a crucial inflection point. For scalpers, the intraday breakout above $140.50 offers excellent risk-reward potential. Swing traders should focus on key levels, letting the price confirm the trend before entering. Staying disciplined with stop losses and sticking to the plan will be critical, especially given NVDA's high volatility.
Conclusion
With NVDA consolidating near key levels, it’s time to prepare for the next big move. Use this plan to stay ahead, adapt quickly, and make the most of NVDA's dynamic price action. Whether you're scalping or swing trading, opportunities abound—stay sharp!
Disclaimer
This analysis is for educational purposes only and should not be taken as financial advice. Always do your own research and trade responsibly.
