NVDA with high volume broke out of the trading range 400 to 500 which has been a range for more than 6 months and trades at around 550 atm.
Usually, after significant breakouts, price movement tend to Rallye not more than 5% higher off of an all-time high, if it does euphoria is kicking in. Price action could look for a pullback or consolidation to former resistance which is at 500 and become the bouncing point after turning it into support.
Key takeaways:
One could see a healthy consolidation phase since mid-2023.
Two attempts of breaking out of a resistance at 480 were rejected twice,
-first peak: 502.66/August 24th, 2023;
-second peak: 505.48/ November 20th 2023),
The both of them failed breakout attempts developed high volume, which led to retest support-level at 400 twice:
-409.80/September 21st
-392.30/October 31st 2023
Moving Averages, especially 50SMA show a bouncing point, which is a positive indicator.
Now what? 2 options:
1. If volume keeps it momentum and increases, the price could soar to 600 in the first quarter of 2024.
2. After a breakout from 500 and ~ 10% gain to 550, a retest of 500 support level/bounce as a confirmation move for more upward movement
2.1. The retest of 500 could become another failed breakout and retest of 400 lows is in play
What do you think about this setup?
GQT
Usually, after significant breakouts, price movement tend to Rallye not more than 5% higher off of an all-time high, if it does euphoria is kicking in. Price action could look for a pullback or consolidation to former resistance which is at 500 and become the bouncing point after turning it into support.
Key takeaways:
One could see a healthy consolidation phase since mid-2023.
Two attempts of breaking out of a resistance at 480 were rejected twice,
-first peak: 502.66/August 24th, 2023;
-second peak: 505.48/ November 20th 2023),
The both of them failed breakout attempts developed high volume, which led to retest support-level at 400 twice:
-409.80/September 21st
-392.30/October 31st 2023
Moving Averages, especially 50SMA show a bouncing point, which is a positive indicator.
Now what? 2 options:
1. If volume keeps it momentum and increases, the price could soar to 600 in the first quarter of 2024.
2. After a breakout from 500 and ~ 10% gain to 550, a retest of 500 support level/bounce as a confirmation move for more upward movement
2.1. The retest of 500 could become another failed breakout and retest of 400 lows is in play
What do you think about this setup?
GQT
Trade closed: target reached:
well, target reached :)
May the force be with you