NVDA: Strong Buy Signal and Short-Term Based on Key Indicators

Oct 3

The technical analysis for NVDA points to a strong buy recommendation based on the following key indicators:

Relative Strength Index (RSI 14): Current value 71.74 – Approaching overbought levels but still neutral.

Momentum (10): Current value 4.18 – Indicates strong upward momentum, reinforcing a buy recommendation.

MACD Level (12, 26): Current value 0.29 – Confirms a bullish trend with a clear buy signal.

Ultimate Oscillator (7, 14, 28): Current value 75.57 – Suggests strong upward momentum, indicating further potential gains.

Moving Averages (Exponential and Simple for 10, 20, 50, 200): All show buy signals, with prices above critical support levels across different timeframes.

Conclusion
While the RSI nears overbought levels, the strong signals from momentum, MACD, and moving averages confirm a bullish trend. These factors present a short-term opportunity for investors to capitalize on NVDA's upward movement, as the stock appears poised for continued gains in the near future.

Disclaimer
This analysis is for informational purposes only and is not financial advice. Always conduct your own research or consult a financial advisor before making any investment decisions.

Oct 4

Note

NVDA Analysis UPDATE

Here’s a breakdown of the key indicators and what they suggest for short term possitioning based on 30 minutes chart:

Oscillators:
Relative Strength Index (RSI) (14): 67.22 (Neutral)
RSI is approaching overbought territory but still neutral, which indicates there’s some room for upward movement before reaching overbought levels.
Stochastic %K (14, 3, 3): 71.84 (Neutral)
The Stochastic %K is in neutral territory, indicating there’s no immediate overbought or oversold condition.
Commodity Channel Index (CCI) (20): 106.32 (Neutral)
CCI above 100 indicates bullish momentum, but it's still considered neutral for this signal.
Momentum (10): 1.39 (Buy)
Momentum is positive, suggesting increasing bullish energy in the market.
MACD Level (12, 26): 1.08 (Buy)
The MACD is giving a clear bullish signal, showing a crossover and potential for price increases.
Awesome Oscillator: 3.04 (Buy)
The Awesome Oscillator confirms upward momentum, indicating buying pressure.

Moving Averages:
All Moving Averages (10, 20, 30, 50, 100, 200) are signaling Buy.
Both the Exponential Moving Averages (EMA) and Simple Moving Averages (SMA) across all timeframes suggest a strong bullish trend, providing confirmation for a buy signal.
The fact that these averages are trending upwards shows sustained market strength, making a long position favorable.

General Trend:

NVDA is supported by both bullish momentum and the positive outlook from moving averages, reinforcing the case for upward movement.
The Ichimoku Base Line (121.03) is neutral, suggesting the market may still be consolidating, but the overall trend favors a potential breakout.

Signal: Keep Long

The combination of bullish momentum, MACD, Awesome Oscillator, and supportive moving averages indicates a favorable long position. NVDA appears to be in an upward trend, with oscillators approaching—but not yet in—overbought conditions, suggesting further potential upside before any significant correction.

Disclaimer: This signal is for informational purposes only and does not constitute financial advice. Trading cryptocurrencies involves high risk. Please conduct your own research before making any trading decisions.

Oct 7

Note

Updated Technical Analysis of NVDA (30 min):

Key Factor: Approaching Key Resistance at 131.25

At a current price of 129.18, NVDA is nearing a crucial resistance level at 131.25. The technical indicators show mixed signals, suggesting strong momentum but also a possible overextension. Here's a detailed look at the key indicators:
Oscillators:

Relative Strength Index (RSI 14) - 82.20:
The RSI is in the overbought zone, indicating strong momentum but also raising the possibility of a pullback. When RSI reaches such levels, it often signals that buying pressure may slow down.

Stochastic %K (14, 3, 3) - 96.82:
Similar to the RSI, this stochastic indicator is highly overbought, suggesting the asset might soon experience a reversal or consolidation.

Commodity Channel Index (CCI 20) - 201.38:
The CCI is extremely overbought and flashing a Sell signal. This reinforces the overextension scenario, implying the price might struggle to push higher without some correction.

Average Directional Index (ADX 14) - 40.54:
The ADX shows a strong trend. With a reading above 40, it indicates that the current upward trend is powerful, which adds to the breakout potential but also signals caution.

Momentum (10) - 4.98 & MACD Level (12, 26) - 1.69 (Buy):
Both indicators show continued strength, suggesting that buyers are still in control, and there could be enough force to test or break the 131.25 resistance.

Moving Averages:

All moving averages (10, 20, 30, 50, 100, 200) are indicating a Buy. This includes both simple and exponential averages, showing the current upward movement has broad support across different time frames.

Ichimoku Base Line (9, 26, 52, 26) - 125.31 (Neutral):
The Ichimoku baseline indicates neutral conditions, suggesting no immediate reversal or acceleration of the trend. The price is currently above key support levels, adding more confidence to the bullish outlook.

Two Different Paths Based on the Technical Analysis:

1. Aggressive (Looking for Breakout Opportunity):

For a trader willing to take on higher risk, the indicators show strong momentum, despite the overbought conditions. There’s a clear opportunity for a breakout above the 131.25 resistance.

Action:
Hold the long position in anticipation of a breakout. If the price breaks through 131.25 with strong volume, consider adding to the position, aiming for the next potential target around 135.

Risk Management:
Given the overbought indicators, set a stop-loss just below 127.50 (or another key support level, such as 126.50) to protect profits if the breakout fails.

Profit Target:
Post-breakout, consider targeting 135+, but watch for a potential exhaustion given the high RSI and other overbought signals. Scaling out of the position as price approaches this level can also be a prudent move.

2. Conservative (Taking Profits Near Resistance):

For a more cautious approach, the technicals suggest that the 131.25 resistance is significant, and the overbought indicators warn of a potential pullback.

Action:
Consider taking full or partial profits at or near the current level (129.18) or wait for a test of 131.25 to see if it holds. Given the overbought signals from RSI, Stochastic, and CCI, it’s likely that price could struggle to break this resistance on the first attempt.

Re-entry Strategy:
After taking profits, wait for a confirmed breakout above 131.25 before re-entering the position. A breakout confirmed by volume and price action could signal the next leg up.

Stop-Loss:
If choosing to keep a portion of the position, place a tight stop just below 128, or lower if you prefer a bit more room. This allows you to protect gains while still participating in the upside potential if the breakout occurs.

Conclusion:

For aggressive traders, NVDA shows promising momentum to challenge the 131.25 resistance, with indicators suggesting a potential breakout if volume supports it. However, the overbought conditions present risks, so tight risk management is essential. For conservative traders, taking profits at these levels or near 131.25 seems prudent, with the option to re-enter once a confirmed breakout occurs.

Oct 8

Trade active

Nvidia is currently up by 3.22%, breaking through the resistance at 131.25, with the last price at 131.98 and a high of 132.92. We are closely monitoring this breakout attempt to determine if it holds, as it will guide our decision on managing the existing long position

Oct 9

Trade active

We continue to hold this long position, riding the trend with Nvidia up 1.3% to $134.57 in premarket trading, approaching its all-time high of $135.57 set in mid-June.

With the stock inching close to its record high and having accrued impressive gains of 168% in 2024, now is the right time to assess the structural outlook of this AI giant. I'm preparing a new post to discuss its potential to reach fresh record highs in the coming weeks. Follow me to stay tuned for the upcoming analysis!

Oct 10

Trade active

As we approach the target at $135, it's prudent to protect some profits by raising our stop loss a couple of dollars, moving it up from $128. If you want the specific stop level, feel free to leave a comment!

Oct 11

Trade closed: target reached

Nvidia (NVDA) has reached the target of $135. Time to lock in gains and reevaluate future opportunities!.

I'm preparing a new post evaluating more swing trading opportunities like this one. Follow me and stay tuned for updates on the next potential setups!