NVDA: TA for tomorrow trading (10/07/2024)Key Levels:
Resistance Zones:
127.66: This appears to be a significant resistance level based on past price action. The price is currently approaching this level, and it might act as a barrier for further upward movement.
125.17: Another key level where selling pressure could appear, based on previous consolidation and rejections.
Support Zones:
122.85 - 122.45: These zones are crucial as they represent the immediate support level, where buyers previously stepped in. It’s important to see if the price holds here in case of a pullback.
114.70: This is a major support zone, and a break below this could signal further downside potential.
Price Action:
There’s an upward trend forming from the low around 114.70 to the current price, indicating bullish momentum. However, the upward channel shows the price nearing a resistance point, which might cause consolidation or a pullback.
The recent breakout from a descending trendline suggests a potential continuation of the uptrend, but the price approaching 127.66 might see some rejection unless there’s strong buying volume.
Volume Analysis:
The volume spikes on upward movements indicate buyer interest, but recent candles show a bit of hesitation as the price nears resistance levels. Watch for a volume increase if it attempts to break through the 127.66 level for confirmation of bullish momentum.
Indicators:
The chart shows oscillating movement near the zero line, indicating a possible indecisive market. Watch for a clearer direction from the oscillators in the next session for a stronger signal.
Strategy for Tomorrow:
Bullish Scenario: If NVDA breaks above 127.66 with strong volume, this could be a signal for a continuation of the uptrend, with a potential target of around 130 or higher.
Bearish Scenario: If NVDA fails to break the 127.66 resistance, look for a pullback to the 122.85 - 122.45 support zone. A break below this support may indicate further downside, possibly testing the 114.70 support again.
Entry/Exit Points:
Bullish Entry: On a confirmed breakout above 127.66, enter long with a stop-loss slightly below 125.17. Look for targets around 130.
Bearish Entry: If price gets rejected at 127.66, a short position could be considered with a target around 122.85. Place a stop-loss above 127.66 to manage risk.
