NVDA Technical Analysis for Tomorrow Oct. 21, 2024Key Levels:
Support Levels:
137.46: This seems to be a significant support zone, with previous price action bouncing around this level.
128.74: Stronger support, aligning with recent lows and lower trendline support.
Resistance Levels:
140.90: Immediate resistance level, previously tested.
145 area: Potential resistance on a breakout above the current price action.
Trend and Momentum:
Trendlines: There appears to be a symmetrical triangle forming, with price consolidating between upward and downward trendlines. This typically signals an impending breakout or breakdown.
MACD: The MACD line is below the signal line, showing weakening momentum. If this continues, there could be downward pressure tomorrow, especially if the MACD crosses further into negative territory.
Volume:
There's noticeable volume around the middle section of the price range. If there’s a spike in volume tomorrow, a move in either direction could gain more momentum.
Scenario for tomorrow October 21, 2024:
Bullish Case: A break above 140.90 could push the stock toward 145. This would be confirmed by an uptick in volume and bullish MACD crossover.
Bearish Case: A breakdown below the upward trendline or 137.46 support could push NVDA toward 128.74. The MACD indicates potential weakness, so if selling volume increases, the downside scenario could play out.
Strategy:
For Bulls: Watch for a break above 140.90 with rising volume, targeting 145.
For Bears: If the price fails to hold 137.46, a short play down to 128.74 could be viable, depending on volume and price action.
Disclaimer:
This technical analysis is for educational purposes only. Trading stocks involves risks, and past performance is not indicative of future results. Always do your own research or consult a financial advisor before making investment decisions.