NVIDIA at Crossroads: Will $116 Hold as the New Support? Jan. 3Technical Analysis:
* Trend Overview: NVDA has recently broken below the short-term support trendline, aligning with a bearish pattern. The stock is testing a critical support zone around $116, with declining momentum.
* Key Indicators:
* MACD: Bearish crossover with increasing negative divergence indicates selling pressure.
* Stoch RSI: Currently near oversold levels, showing possible consolidation or a short-term bounce.
* Volume: Rising sell volume signals strong bearish conviction as the price approaches key support.
Support and Resistance Levels:
* Immediate Support: $116 (critical level).
* Secondary Support: $110 (aligned with the next significant demand zone).
* Resistance Levels:
* Near-term resistance at $124.
* Further resistance at $128.95 and $149.10 (as noted by the CALL wall).
Options and GEX Analysis:
* Highest Positive GEX Level: $128.95, serving as the next potential gamma resistance.
* PUT Dominance: Significant PUT support around $116 aligns with technical support, offering a strong defensive zone.
* Volatility Metrics:
* IVR: 70.4% (indicating above-average implied volatility).
* Options Flow: 41.4% CALLs dominance suggests a lack of bullish sentiment, though potential for a rebound remains.
Scenarios:
1. Bullish:
* Entry: Above $124 on strong momentum.
* Target: $128.95 or higher if the gamma squeeze accelerates.
* Stop Loss: Below $120.
2. Bearish:
* Entry: On a breakdown below $116 with strong volume.
* Target: $110 or lower.
* Stop Loss: Above $118.
Conclusion:
NVDA is testing a critical support zone. A break below $116 could intensify the bearish momentum, while holding this level might attract short-term buyers aiming for $124+. Options data suggests bearish sentiment dominates, yet watch for unusual activity at support.
