Short Setup: NVDA Rejection at Previous Month's Midpoint
My trading approach is centered around price action, focusing primarily on the range of previous candles rather than relying on complex technical indicators. I believe that the price itself tells the most important story, and analyzing the behavior around key levels, such as previous highs, lows, and midpoints, gives me the clearest insight into future movements. By keeping my charts simple and clean, I reduce the noise and distractions, allowing me to focus solely on key price levels and ranges.
NVDA Short Strategy: Repeated Rejection of Previous Month’s Midpoint (110.97) and Previous quarter midpoint (108.19) Signals Potential Drop to Previous 6 month mid(94.04) and potentially on down to (Previous Month’s Low (90.69)
This strategy focuses on NVIDIA's consistent rejection of the previous month's midpoint around 110.97, signaling weakness. If NVDA fails to break or gap above this level, the likelihood of a move down to the previous month's low (90.69) increases. The key entry trigger would be another rejection at the 110.97 level, with a stop loss placed just above the midpoint. Target the previous month’s low at 90.69 for the short position.
Premise: The stock continues to reject the previous month's and previous Quarters midpoint, suggesting weakness. If the price remains below this level and does not break or gap above it, there is a potential for further downside, targeting the previous month's low.
Entry Trigger: Look for another clear rejection or failed retest of the previous month's midpoint around 110.97. Enter a short position if the price fails to break above or gap above the 110.97 level and starts to roll over.
Confirmation Signal: Wait for a breakdown of near-term support levels, like the recent lows around 106-107, for additional confirmation.
Target: The initial downside target would be the previous 6 month's mid at .@ 94.04 with the next target of the previous month Low @ 90.69.
Stop Loss: Place a stop loss slightly above the previous month's midpoint (111-112) to protect against a reversal or gap above.
