NVDA Technical Analysis for Oct. 22, 2024Key Levels:
Resistance levels:
144.50: The highest resistance level on the chart, marking a significant upside target if the price continues to rise.
140.89: Another critical resistance level, where NVDA seems to be hovering close to, which could be tested soon if upward momentum persists.
139.15: A minor resistance, which was recently broken, indicating that NVDA is in a bullish move.
Support levels:
138.00: The nearest support level below the current price action, providing a cushion in case of a short-term pullback.
136.75: Another key support level that could provide a stronger base if NVDA drops from its current level.
130.00 and 128.75: These are lower support zones, representing significant areas of past price action that could become relevant if a more substantial correction occurs.
Trend and Price Action:
Bullish Breakout: NVDA has broken out of its descending trendline and is moving upwards strongly. This breakout could be indicative of bullish sentiment in the short term.
Ascending Momentum: The price is showing a strong move upward, clearing resistance levels with conviction. As long as the price remains above support levels, the trend should continue.
Volume Spike: There is a noticeable increase in volume as NVDA pushed higher, suggesting strong buying interest and momentum behind the upward movement.
Indicators:
MACD at the bottom show slight volatility but seem to reflect upward momentum, supporting the bullish price action.
Scenario 1: Continuation of Bullish Move
If NVDA can hold above 139.15 and break through 140.89, it could head toward the next resistance level at 144.50. A strong volume would support this move higher.
Scenario 2: Potential Pullback
If NVDA fails to maintain its current bullish momentum, watch for a pullback to 138.00 or 136.75, where it might find support and consolidate before attempting another upward push.
Recommendation:
Long positions could be entered if NVDA continues to hold above 139.15 and breaks through 140.89, targeting the next resistance levels around 144.50.
Short positions could be considered if NVDA retraces back below 138.00, with targets at 136.75 and possibly down to 130.00 in the case of a more substantial pullback.
Disclaimer:
This analysis is for educational purposes and not financial advice. Trading involves risk, and you should only invest funds you can afford to lose. Always perform your own research and consult with a financial advisor before making any trading decisions.
