NVDA Breakout Watch: Trading Plan for Dec. 4, 2024NVDA is setting up an interesting price action pattern, hinting at potential breakouts or consolidations. Here's a detailed trading plan based on technical analysis to help you navigate the next moves confidently.
1️⃣ Price Action & Chart Analysis
On the hourly chart:
* Trend Channel: NVDA is trending within an upward channel, showing higher lows and higher highs. The current price is testing the upper trendline resistance.
* Key Levels:
* Support: $137.75
* Resistance: $140.82
Watch for a breakout above $140.82 or a pullback to test $137.75 for entry points.
* Liquidity Zone: A liquidity zone appears between $137.75 and $140.43. This range is critical for observing where buyers and sellers engage.
2️⃣ Order Block & Supply/Demand Zones
* A visible demand zone around $137.75 aligns with the recent pullbacks, suggesting buyers are stepping in at this level.
* Supply zone near $141 aligns with previous resistance, making it a critical breakout level.
3️⃣ Scalping Strategy
For scalpers:
* Entry: Look for a breakout above $140.82 with volume confirmation. Target $142 for a quick profit.
* Stop-Loss: Tight stop below $140.43 to minimize risks.
* Volume Check: Ensure there’s increased buying volume for momentum plays.
4️⃣ Swing Trade Strategy
For swing traders:
* Entry Option 1: Pullback entry near $137.75 if it holds as support.
* Entry Option 2: Breakout above $141 with a daily close confirmation.
* Targets: First target at $145, second target near $150 if momentum continues.
* Stop-Loss: Place stops below $137 for pullback entries or under $140 for breakout plays.
5️⃣ MACD & Momentum Insights
* MACD on the hourly chart is curling upward, indicating bullish momentum.
* Keep an eye on a potential divergence if the price starts consolidating near resistance.
Game Plan for Tomorrow
* Scenario 1: If NVDA breaks $140.82, wait for confirmation with volume to enter. Trail stops as the price approaches $142 and $145.
* Scenario 2: If it rejects $140.82, prepare for a pullback to $137.75, where scalpers can look for a quick bounce.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Trade responsibly and manage your risk effectively.
