NVDA: Breakout Imminent or More Consolidation?Trading Plan and Technical Analysis for NVDA
Price Action Overview: NVDA is currently trading around $135.98, showing signs of recovery after bouncing off a key low at $131.80. The stock is attempting to break out of a descending channel pattern, with a short-term breakout above the $136.00-$137.00 resistance zone. The MACD indicates growing bullish momentum, while volume has picked up in the last trading session, signaling increased interest.
Liquidity Zones and Order Blocks:
* Liquidity Zone 1 (Support): $131.80-$133.50 - Buyers have historically stepped in at this level, marking it as a potential accumulation zone.
* Liquidity Zone 2 (Resistance): $136.00-$138.50 - Sellers have consistently defended this area; breaking above it could trigger further buying.
Key Support and Resistance Levels:
* Support Levels:
* $135.00 - Psychological support and intraday pivot.
* $131.80 - Recent swing low and critical support.
* Resistance Levels:
* $137.00 - Immediate overhead resistance.
* $139.50 - A breakout target on bullish continuation.
Scalping Gameplan:
* Bullish Setup:
* Enter long above $137.00, targeting $138.50 and $139.50.
* Stop-loss: Below $136.50.
* Trigger: Look for a strong 5-minute or 15-minute candle close above resistance with volume confirmation.
* Bearish Setup:
* Enter short below $135.00, targeting $133.50 and $132.00.
* Stop-loss: Above $135.50.
* Trigger: A rejection at $136.00 followed by a break below $135.00 on high volume.
Swing Trading Playbook:
* Bullish Case:
* Enter on a confirmed breakout above $137.00, with a swing target at $142.00.
* Stop-loss: Below $135.00 to limit downside risk.
* Indicators to Watch: MACD bullish crossover and rising RSI above 50.
* Bearish Case:
* Enter short if price fails to hold above $135.00 and closes below $131.80.
* Swing target: $128.00.
* Stop-loss: Above $136.00.
Thoughts and Suggestions: NVDA is at a critical juncture, attempting to break out of its descending trendline. A strong breakout above $137.00 could trigger a bullish rally, but traders should remain cautious of rejection at key resistance levels. Scalpers should closely monitor volume at the breakout point for confirmation. Swing traders may want to wait for a decisive close above resistance or below support for a clearer directional bias.
Disclaimer: This analysis is for educational purposes only and not financial advice. Always do your own research and consider consulting a financial professional before making trading decisions.