NVIDIA (NVDA): Testing Key Resistance Levels – Will the Bulls Take Charge?

Phil Vo

Nov '24 (edited) • 💡 Trade Ideas & Analysis

Current Status: NVDA is in a short-term uptrend, approaching a key resistance zone at $147.83-$148 after bouncing from $137.36.

Resistance Levels: $147.83-$148: Key resistance zone. A breakout here could lead to $150 and $152 targets.

Support Levels: $144: Immediate support. $137.36: Strong base support; a break below could signal bearish continuation.

Key Scenarios: Bullish Breakout: A breakout above $148 with volume may signal further upside. Bearish Reversal: Failure to break $148 could lead to a pullback to $144 or $137.36. Range-Bound: Potential consolidation between $144 and $148 before a decisive move.

Next Steps: Watch for strong volume and price action near $148 to confirm the direction.

Here are my thoughts on NVIDIA’s current setup based on the analysis:

NVDA is at a Pivotal Level: The approach to the $147.83-$148 resistance zone is critical. It’s a decision point where the market will either confirm bullish strength (with a breakout) or show weakness (with a rejection).
Momentum is Building, but Caution is Needed: The higher highs and lows, along with increasing volume, suggest buyers are stepping in. However, resistance at $148 is historically strong, and failure to break above could trigger profit-taking and a pullback.
Opportunity Lies in the Breakout: If NVDA breaks above $148 with volume, it could quickly run to $150 or $152. This would provide a great risk/reward opportunity for short-term traders.
Beware of a False Breakout: A fake breakout above $148, followed by a rejection, could trap late buyers. If this happens, we might see a sharp pullback toward $144 or even $137.36.
Risk Management is Key: Whether you're bullish or bearish, it’s crucial to define your stop-loss levels. For a bullish trade, placing stops below $144 is reasonable, while bears should wait for clear signs of rejection at $148 before entering.
Short-Term Outlook: This setup favors short-term traders looking for either breakout opportunities or reversal plays. Swing traders should wait for more clarity, as NVDA could consolidate between $144-$148 before making a decisive move.

In conclusion, NVDA’s price action near $148 is the key to watch. If the breakout happens with strong volume, I’d lean bullish toward $150+. Otherwise, I’d expect consolidation or a pullback. What’s your plan for this setup?

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