NVDA Technical Analysis and GEX Insights-Jan. 8
Technical Analysis (30-Minute and 1-Hour Chart)
* Trend and Price Action:
* NVDA experienced a sharp pullback after testing the $155.00 resistance level and is now consolidating around $141.50.
* The price is forming a potential descending triangle with immediate support at $139.00 and resistance at $144.00.
* Volume: The pullback is accompanied by a significant volume increase, signaling heavy selling pressure at higher levels.
* Indicators:
* MACD: Bearish crossover with increasing downward momentum, confirming the recent selloff.
* Stochastic RSI: Oversold conditions, suggesting the possibility of a short-term bounce.
* Key Levels:
* Support Levels:
* $139.00: Immediate support zone and a critical pivot for maintaining bullish sentiment.
* $136.00-$135.00: Major support levels aligned with high PUT wall activity, signaling strong downside protection.
* $125.50: Extended support level, marking the lower boundary of recent price action.
* Resistance Levels:
* $144.00: Immediate resistance zone with PUT walls above, adding to selling pressure.
* $150.00: Strong resistance backed by CALL wall activity.
* $155.00: Key resistance aligned with the highest positive gamma exposure.
GEX Insights for NVDA
* Gamma Exposure (GEX):
* Positive GEX Zones:
* $150.00-$155.00: Dominant CALL wall region, acting as significant resistance.
* $144.00: Additional resistance level with high gamma-related hedging activity.
* Negative GEX Zones:
* $139.00: Immediate PUT wall, marking strong short-term support.
* $136.00-$135.00: High negative gamma concentration, reinforcing downside support.
* Options Metrics:
* IVR (Implied Volatility Rank): 21%, indicating relatively low options pricing.
* Options Flow:
* CALLs: Concentrated at $144.00 and $150.00, reflecting resistance levels.
* PUTs: Heavy activity below $139.00, highlighting significant hedging and support.
Trade Scenarios:
Bullish Scenario:
* Entry: Above $144.50 with confirmation of breakout momentum.
* Target: $150.00 (initial), $155.00 (extended).
* Stop-Loss: Below $141.00 to limit downside risk.
Bearish Scenario:
* Entry: Below $138.50 with strong selling volume.
* Target: $135.00 (initial), $125.50 (extended).
* Stop-Loss: Above $141.00 to cap losses.
Conclusion
NVDA is currently consolidating near $141.50 after a steep pullback. A break below $139.00 could lead to further downside toward $135.00 or lower, while a breakout above $144.50 may trigger a move toward $150.00 or $155.00. GEX data confirms these levels as critical pivot points for price action and options-related activity.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk responsibly.
Let me know if you'd like further clarifications or insights!
