NVDA 8/9

Technical Analysis (TA) Overview:
Trend & Price Action:

Current Price: The price is trading around $106.19 with resistance nearby at $109.22.
Descending Triangle Formation: The price action indicates a descending triangle pattern, with lower highs forming, suggesting possible bearish sentiment.
Volume Profile: The right side of the chart shows a volume profile, highlighting areas where most trading has occurred. The price is near a high-volume node, meaning it might face resistance or support here.

Support and Resistance Levels:

Support Levels:
$97.13: This is the nearest strong support level. A break below this could lead to further declines.
$90.73: This is another crucial support level, just above the recent low of $90.69. If the price drops to this level, it could be a potential buying opportunity if the level holds.

Resistance Levels:
$106.19: The current level is acting as resistance, and the price is struggling to move above it.
$109.22: Another resistance level that could act as a barrier if the price manages to break above $106.19.
Moving Averages:

The chart doesn’t seem to display moving averages directly, but they can be important:
Short-Term (e.g., 50 EMA): If you plot this, it might be converging towards the price, offering additional resistance.
Long-Term (e.g., 200 EMA): This would typically be much higher given the recent downtrend, acting as a more distant resistance level.

Volume Analysis:

Volume Levels: Volume is crucial in confirming breakouts or breakdowns. The current volume is moderate, which could suggest a lack of strong conviction in either direction.
Volume Profile: The volume profile shows that a significant amount of trading has occurred between $100-$109. This could mean that the price may hover within this range until a clear breakout or breakdown occurs.

MACD (Moving Average Convergence Divergence):

Current MACD: The MACD below the price chart shows the MACD line potentially crossing above the signal line, which might suggest a short-term bullish momentum. However, if the price fails to break resistance, this could reverse.

Potential Scenarios & Strategies:
Bearish Scenario (Continuation Downwards):

Entry: If the price fails to break above $106.19 and drops below $97.13, this could be an opportunity to buy lower, potentially around $90.73 or slightly above it.
Target: A drop towards the $90.73-$97.13 range could offer a better entry. If you’re looking for a deeper discount, watch for a break below $90.73, though this might indicate a more severe downtrend.
Stop-Loss: If buying at these lower levels, consider placing a stop-loss below the $90.69 low, around $89.50, to protect against further declines.

Bullish Scenario (Reversal Above $106.19):

Entry: If the price breaks above $106.19 with strong volume, this might indicate the start of a rally. Consider entering around $107-$109.
Target: If the breakout is strong, targets could be set at $115-$121.62, with the latter being a significant resistance level as per the volume profile.
Stop-Loss: Set a stop-loss below the breakout level, around $104, to protect against a false breakout.

Neutral/Sideways Scenario:

Strategy: If the price remains between $97.13 and $109.22, it might be best to wait for a clear breakout or breakdown before making a move. Accumulating slowly on dips closer to $97.13 could be considered if you believe in NVDA's long-term prospects.

Conclusion:
Possible Pullback: There is potential for the price to drop back towards the $97.13-$90.73 range, offering a better entry point. However, this will depend on broader market conditions and whether NVDA can maintain its current support levels.

Strategy: Wait for a decisive move below $97.13 if you’re aiming to buy lower. If the price breaks above $106.19 and shows strength, you may want to consider entering at a higher price but with a clearer trend direction.

Market Sentiment & Fundamentals: Given NVDA’s strong position in the AI and semiconductor markets, any positive news or developments could lead to a sharp reversal, so keep an eye on market sentiment and broader tech sector movements.