NVDA Ascending Channel Insights: Key Scalping & Swing ZoneNVDA continues its bullish march within a clear ascending channel. The price action presents excellent opportunities for scalping short-term volatility and swing trading the broader trend. With key support and resistance levels, alongside MACD divergence, here's a comprehensive analysis and trading game plan.
Market Structure Overview:
* Trend: NVDA is trading within an ascending channel, suggesting bullish momentum. However, the price is approaching resistance near $148-$150.
* Current Price Action: The last few candles show a slowing upward momentum, signaling potential consolidation or pullback.
* Key Levels:
* Resistance Zones: $148.55 (short-term), $152.89 (channel top and major resistance).
* Support Zones: $137.77 (critical swing low), $131.89 (channel bottom and potential bounce area).
Liquidity & Order Blocks:
* Liquidity Zones: Significant liquidity sits below $137.77, which could attract a stop hunt before a reversal.
* Order Blocks:
* Bullish OB: Around $137.77-$139, aligning with the last strong bullish breakout.
* Bearish OB: Near $148-$150, likely to act as a supply zone.
MACD & Volume Analysis:
* MACD: Shows a bearish divergence—momentum weakening while price trends higher. Watch for a cross below the signal line for confirmation of a pullback.
* Volume: Declining on recent upward moves, which may indicate waning bullish strength.
Scalping Strategy:
* Entry: Look for short scalps near $148-$150, especially if a rejection forms with bearish candles and MACD confirmation.
* Exit: Target $145-$144 for quick profits, with a tight stop-loss above $150.
* Stop-Loss: $150.50 to minimize risk in case of a breakout.
Swing Trading Strategy:
* Bullish Play: Wait for a pullback into the $137.77-$139 support zone. Enter long if bullish confirmation (e.g., hammer or engulfing candle) appears.
* Bearish Play: If price fails to break $150 and confirms a lower high, consider shorting with targets at $137.77.
* Stop-Loss: For longs, set at $137. For shorts, above $150.
Game Plan:
1. Pre-Market Prep:
* Mark key levels: $150 (resistance), $137.77 (support), and channel edges.
* Check for news or macro events affecting tech stocks.
2. At Market Open:
* Monitor initial price action for rejection or breakout near $148-$150.
* Look for high-volume moves to confirm trend direction.
3. Mid-Day Play:
* If price consolidates near the channel's midline, avoid overtrading.
* Focus on reacting to breakout or pullback scenarios.
4. EOD Exit:
* Close all scalping positions by the day's end to avoid overnight risk.
Likely Direction:
* Bullish Scenario: A breakout above $150 could push NVDA towards $152.89 or higher, aligning with the channel top.
* Bearish Scenario: Failure to sustain above $148 may lead to a retracement towards $137.77 for liquidity.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always perform your own due diligence and trade responsibly.
