NVDA Technical Analysis for Nov. 18, 2024NVIDIA (NVDA) is showing signs of a potential reversal after a sharp pullback, presenting interesting opportunities for both scalping and swing trades. With price action testing critical levels, this analysis outlines key zones, potential setups, and actionable insights for traders.
Technical Overview:
Market Structure:
Trend: Short-term downtrend with signs of bullish recovery.
EMA Levels: The 9 EMA and 21 EMA are narrowing, suggesting a possible crossover if bullish momentum builds.
Key Levels:
Resistance Zones:
$146.00 – Major supply zone from previous highs.
$149.00 – Psychological level and upper resistance.
Support Zones:
$142.00 – Immediate demand zone where buyers stepped in.
$140.00 – Strong support tested multiple times in the last session.
Order Blocks:
Bullish Order Block: $140.00–$142.00 (highlighted by high volume on prior bullish candles).
Bearish Order Block: $146.00–$149.00 (supply-heavy zone with rejection candles).
Supply and Demand Zones:
Demand Zone: $140.00–$142.00
Supply Zone: $146.00–$149.00
Indicators:
MACD: Bullish crossover forming; histogram increasing.
Volume: Uptick in volume on green candles suggests growing buyer interest.
Game Plan:
Scalping Plan (1-Min and 5-Min Timeframe):
Entry for Long:
Watch for price holding above $142.70, confirmed by bullish engulfing candles or breakouts on higher volume.
Target 1: $145.50 (scalp to supply zone).
Target 2: $146.00 (extended scalp).
Entry for Short:
If price rejects $146.00–$149.00 supply zone, enter short below $145.50.
Target 1: $143.00 (mid-range scalp).
Target 2: $142.00 (demand zone retest).
Stop Loss:
Long: Below $141.50 (below immediate demand).
Short: Above $146.50 (supply rejection invalidated).
Swing Trade Plan:
Bullish Scenario:
If price holds above $142.00 and reclaims $146.00 with conviction, initiate a swing trade toward $149.00.
Extended target: $151.00 (gap fill above $149.00).
Stop Loss: Below $141.00.
Bearish Scenario:
If $146.00–$149.00 is strongly rejected, consider shorting for a retest of $140.00 demand zone.
Extended target: $137.00 (new low formation if $140.00 fails).
Stop Loss: Above $149.50.
My Thoughts:
For Scalping: NVDA is perfect for short bursts of momentum plays within the $142.00–$146.00 range. Patience is key to waiting for clear confirmations, especially near supply and demand zones.
For Swing Trades: The broader structure is setting up for a potential reversal, but the $146.00 level is critical. A sustained breakout above this level could spark a bullish continuation.
Directional Bias:
Short-term: Neutral-to-bullish. A clean breakout above $146.00 signals strength.
Mid-term: Slightly bullish, contingent on holding $140.00 as support.
Actionable Suggestions:
Monitor $142.00–$146.00 for scalping setups with volume confirmation.
Place conditional swing orders above $146.00 or below $142.00 based on rejection or breakout.
Avoid trading in the middle of ranges ($143.00–$145.00) to reduce noise.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Trade at your own risk, ensuring proper risk management is in place.
