NVDA: The main reversal points - D & W charts.Daily Chart:
The price has retraced to the 50% Fibonacci retracement area around $115, showing a potential area of temporary support near the 21-day EMA. This is often viewed as a significant retracement level where price can consolidate before deciding its next move.
Resistance is clearly visible around $120.79, which aligns with both the 61.8% Fibonacci retracement and a recent high, making this a critical level to watch for any potential upward continuation.
The 21-day EMA (blue line) is sloping downward, which signals that the price is still under some downward pressure. For any significant bullish momentum to continue, the price needs to break above the 61.8% Fibonacci level ($120.79).
If the price fails to hold the 50% level and drops lower, the next key support is around the 38.2% Fibonacci level at $112, followed by the recent low near $100.
Weekly Chart:
On the weekly chart, the price is trading within an ascending channel, and the price action remains within this bullish structure.
A notable pattern, "Above the Stomach," has formed, which is generally considered a bullish reversal signal. This pattern indicates that buyers stepped in after a significant sell-off, pushing the price higher within the week.
The long-term trend remains intact as the price is still above the 21-week EMA, which continues to slope upwards. As long as the price remains within the ascending channel, the overall bias will likely remain positive.
However, the price may face resistance at $120.79, which aligns with both the daily resistance and the high of the above the stomachh candlestick pattern.
Conclusion:
The key level to watch on the upside is $120.79, which, if broken, could lead to further bullish momentum. On the downside, holding the 50% retracement level ($115) is critical. If the price fails to hold here, further retracement toward $112 or even $100 could be expected. The long-term structure still supports a bullish outlook, but confirmation of strength is needed for the next move higher.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
