Very Bullish on NVIDIA ! Point of Interest at $140.76 but wait..NVDA: Our point of interest is 140.76, and breaking this point would confirm a change of character (CHOCH) or a break of the main structure.
But wait before that…
We have three validations, one of which is extremely important and needs to be analyzed.
The first validation is the break of the ascending channel. Whenever a candle completely exits the channel (body and wick), I consider it a 100% break. Here we have a candle that broke out with significant strength, and in the days that followed, it made a change of character or CHOCH, which is a break of the previous structure or previous swing.
The second validation is that the 8 and 21 EMA lines show strong divergence. This means that the price has enough strength to continue moving upward. However, we have not yet seen any pullback. Remember that price cycles are distinguished by 3 movements:
1. Momentum
2. Pullback
3. Impulse
We should always measure how much strength the price has by monitoring volume and the divergence of these two important EMAs.
My third validation is that we are approaching their earnings report, which could create buying pressure for NVDA before the report, as previous reports have favored the stock and driven the price upward.
BUT WAIT ! HOLD YOUR HORSES BEFORE THAT!!!
We cannot ignore the order block I have around $134. Be cautious there, as it’s a zone where the price previously had significant liquidity. My prediction is that we may see a retracement before a strong push to our point of interest.
Thank you for supporting my analysis.
Best regards,