NVIDIA (NVDA) 1 Day Timeframe for Technical Analysis1. Trend Analysis:
Short-term Trend: NVDA has been in a strong uptrend with a recent correction. The price seems to be attempting to recover, but it's currently testing a key resistance zone.
Medium-term Trend: NVDA experienced a significant rally before pulling back. The current price action suggests the potential for either a continuation of the uptrend or further consolidation.
2. Key Support and Resistance Levels:
Resistance Levels:
$140.82 - $140.76: This zone represents a strong resistance level and aligns with the previous swing high. A break above this level would likely lead to a continuation of the uptrend.
$136.20: Another key resistance level, slightly below the $140.82 - $140.76 zone. Breaking this level could be the first indication of bullish momentum.
$129.37: The current price level, which appears to be struggling to break higher. If it does, the next target would be $136.20.
Support Levels:
$90.78: This level represents significant support and could serve as a target if the price breaks down from current levels. It’s also a key level to watch for potential long entries if the price rebounds here.
$75.64: A critical support level below $90.78. If NVDA drops to this level, it would indicate a deeper correction and potential bearish sentiment.
$39.23: This is a distant support level but should be kept in mind as a worst-case scenario if the market turns extremely bearish.
3. Chart Patterns:
Symmetrical Triangle: The chart shows a symmetrical triangle pattern, with the price approaching the apex. This pattern indicates indecision and can break either way. A breakout or breakdown from this triangle will likely determine the next significant move for NVDA.
Wedge Pattern: The price action also shows a wedge, which is generally a continuation pattern. A breakout above the wedge would likely lead to a move towards the next resistance levels.
4. Indicators:
MACD: The MACD shows a recent bullish crossover, which could signal the beginning of a new uptrend. However, if the price fails to break above key resistance levels, this signal could be invalidated.
Volume: The volume shows a slight increase, which might suggest that a breakout is imminent. However, it’s crucial to monitor whether this volume sustains.
5. Price Action & Trading Strategy:
Bullish Scenario:
Entry Point: Consider entering a long position if the price breaks above $136.20 with strong volume, targeting the next resistance at $140.82 - $140.76. A break above this zone could lead to a continuation towards new highs.
Exit Point: Take profits near $140.82 - $140.76 if the price struggles to break above. If momentum is strong, consider holding a portion of the position for a potential move towards higher levels.
Bearish Scenario:
Entry Point: Consider shorting if the price fails to break above $136.20 and shows signs of weakness, targeting the lower support at $90.78. A breakdown below $90.78 could lead to a further decline towards $75.64.
Exit Point: Take profits near $90.78 once support is tested. If the price continues to fall, consider holding for a move towards $75.64, with a stop-loss above $136.20 to protect against a reversal.
Risk Management: Use stop-loss orders to protect against adverse moves. Position sizing is crucial, with stops placed just below key support or above key resistance levels.
6. Forecasted Direction:
Bullish Above: $136.20, with a target to reach $140.82 - $140.76. If this level is breached, NVDA could target new highs.
Bearish Below: $136.20, with a potential test of $90.78 as the first downside target. If the price drops below $90.78, further downside could lead to a test of $75.64.
Gap Analysis:
Gap Above:
$140.82 - $140.76: If NVDA breaks above $136.20, the gap at this level might be filled, and the price could push higher.
Gap Below:
$90.78: If the price breaks down from current levels, the gap could be filled as NVDA moves towards this support level.
Summary:
Key Levels to Watch:
Bullish Breakout: Above $136.20, targeting $140.82 - $140.76, with potential for further upside.
Bearish Breakdown: Below $136.20, targeting $90.78 with potential further downside to $75.64.
Gap Fill Likelihood:
First Gap to Fill: If the price breaks above $136.20, the gap at $140.82 - $140.76 is likely to be filled first.
Alternative Gap Fill: If the price fails to break above $136.20 and starts declining, the gap near $90.78 might be filled next.
This analysis should give you a clear roadmap for potential trading opportunities in NVDA based on the current technical setup. Keep an eye on the key levels mentioned and be prepared to act based on the direction of the breakout or breakdown from the current consolidation.
