NVDA Technical Analysis for October 18, 2024Chart Overview:
Price Range: $137.40 (current)
Support Levels:
$135.72: Strong recent support.
$130.96: Next major support below, aligning with historical demand zones.
$128.74: Major support from a previous low.
Resistance Levels:
$139.63: Immediate overhead resistance.
$140.90: Significant recent high that aligns with strong sell pressure.
Key Indicators:
Volume: Notable increase in volume, signaling strong interest in recent price action.
Order Blocks: Volumized order blocks suggest significant support between $128.74 and $130.96, with resistance forming above $139.63.
MACD: The MACD appears to be in a slightly bullish crossover position, but the momentum is weak. This could signal potential consolidation or a low-volume upward push in the short term.
Price Action:
After an initial rejection near $140.90, NVDA retraced slightly, currently sitting near $137.40. Price action remains bullish as long as it holds above $135.72. However, the recent rejection could lead to consolidation between $135.72 and $140.90.
Watch for price to approach the resistance zone between $139.63-$140.90. If broken with high volume, a push to new highs is likely. However, failure to break may result in a pullback to test $135.72 and potentially lower toward $130.96.
Directional Bias:
Bullish if NVDA can break above $139.63 and hold with high volume.
Bearish if it fails to break $139.63, which could lead to a drop to support levels at $135.72 or lower.
Important Disclaimer:
This analysis is for educational purposes and should not be considered financial advice. All trading strategies carry risk, and past performance is not indicative of future results. Always perform your own research or consult a financial advisor before making trading decisions.
Why Some Traders Fail While Others Profit:
Many traders access the same technical analysis (TA) but get different results. Here's why:
Discipline & Psychology: A successful trader maintains discipline, controlling emotions like greed and fear. Even with a solid strategy, poor emotional management leads to irrational decisions.
Risk Management: Profitable traders have solid risk management. They accept losing trades and size their positions accordingly. Others overleverage and risk too much capital.
Experience: Understanding how to read market conditions and adapting strategies accordingly can only come with experience. Some traders stick to rigid plans, while others adjust based on changing market dynamics.
Strategy & Timeframes: The same TA can yield different results based on the trader's strategy or timeframe. For example, a day trader and a swing trader may interpret a setup differently due to their focus on different timeframes.
If you have more questions or would like personalized feedback, feel free to send me a private message!
