NVDA at final support

Mar 7, 2023

NVDA has been within a well-defined channel for a bit over 2 months. In fact, drawing two parallel channels (similar to a pitchfork) has shown very reliable buying and selling action. This strong channel is at an inflection point, after several attempts to break out above $238 with a hard rejection today. For the buy algo to stay active the price must continue to go up. Failing to find support in this channel could yield a quick unwind. With an absurd run up over the prior 2 months and a P/E to match, this is a good risk/reward for a short position.