NVDA reaching the perfect resistance point

The monthly chart shows that NVDA is reaching a critical resistance of 441. This is a confluence of upside resistance after nine months of the upside without a significant pullback and a 100% Fibonacci extension. A break above this level exposes the 550 which is also a 138.2% extension from December 2018 low

Nividia monthly chart  

 

OPTIONS TRADING INTENSIVE COURSE INTRO PRICE

 

The Weekly NVDA chart reveals possible fifth waves from the bottom near the finish. This is also an upside wedge resistance of a long-term rising wedge with a declining volume. A break below 347 is required to confirm that the five upside waves are finished and that we are close to a complete reversal. A break above 450 is exposing a test of 500. A break above 500 will be a strong bullish signal.

NVDA weekly chart    

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As the famous trader says…

” Markets can remain irrational longer than you can remain solvent.” 

John Maynard Keynes

How to trade this?

 

It is a fact that a strong upside resistance for Q3 is 450. As long as this resistance is holding in the coming weeks we will probably see a reversal lower to test at least 347.50. A break below this level would mean a complete reversal and a break below the rising wedge line. Near-term long-trade entries have a low probability of success, and now short trades have a greater risk to reward and a higher probability of success. You can place a short trade entry during the NY session on Monday or buy put options. The target is 357, the risk to reward is above and stops should be above 450.

Nividia daily trading strategy

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