NVDA) Approaching Critical Resistance – Breakout or Rejection?Technical Analysis & Options Outlook
📌 Current Price: $118.79
📌 Trend: Reversal in Progress with Key Resistance Ahead
📌 Timeframe: 1-Hour
Price Action & Market Structure
1. Bullish Reversal Underway – NVDA bounced strongly from the $115 demand zone, forming a higher low structure.
2. Break of Structure (BOS) Confirmed – Buyers took control, pushing above recent resistance.
3. Change of Character (ChoCh) Detected – Indicating a shift from bearish to bullish momentum.
4. Key Trendline Test – NVDA is now pressing against the upper trendline resistance, a crucial level for either breakout or rejection.
5. MACD & Stoch RSI – Showing bullish momentum, but approaching overbought conditions, signaling possible short-term consolidation.
Key Reversal Detection & Trendline Details to Watch
* Reversal Zone Detection – The red box indicates the prior liquidity grab area, where sellers were exhausted, leading to the current reversal.
* Trendline Resistance – The current uptrend is testing the diagonal resistance level. If NVDA clears $120–$122, it may lead to an acceleration toward $125–$130.
* Trendline Support – If rejected at $120, expect support retests at $115, followed by $110 PUT Wall support if selling pressure returns.
Key Levels to Watch
📍 Immediate Resistance:
🔹 $120 – $122 (Trendline & Minor Resistance)
🔹 $125 – $130 (CALL Resistance Zone)
🔹 $135 – Major Gamma Target Level
📍 Immediate Support:
🔻 $115 – 2nd PUT Wall Support
🔻 $110 – Highest PUT Support & Major Reversal Zone
🔻 $104.77 – Critical Downside Risk Level
Options Flow & GEX Sentiment
* IVR: 24.5 (Low Implied Volatility, favoring directional moves)
* IVx: 50.5 (-6.71%) (Declining volatility)
* GEX (Gamma Exposure): Bearish Bias, but improving
* CALL Walls: $125 & $130 (Potential take-profit zones)
* PUT Walls: $115 & $110 (High liquidity zones where buyers may step in)
📌 Options Insight:
* Above $120, NVDA could see a momentum breakout toward $125+, forcing dealers to hedge by buying shares.
* Below $115, risk increases for a test of $110 PUT Wall, where liquidity is concentrated.
My Thoughts & Trade Recommendation
🚀 Bullish Case: A breakout above $120 could accelerate NVDA into $125–$130 due to CALL gamma buildup.
⚠️ Bearish Case: If NVDA fails at $120 and loses $115, expect a retest of $110, which aligns with major PUT support.
Trade Idea (For Educational Purposes)
📌 Bullish Play:
🔹 Entry: Above $120 Breakout
🔹 Target: $125–$130
🔹 Stop Loss: Below $115
📌 Bearish Play (Hedge Idea):
🔻 Entry: Rejection at $120
🔻 Target: $115 – $110
🔻 Stop Loss: Above $122
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always perform your own research and manage risk accordingly.
Final Thoughts
NVDA is in a critical breakout zone. A strong move above $120 could lead to a sharp rally, while failure could send it back toward $115–$110 for a potential retest. Stay patient and watch for confirmation before entering a position.
