NVIDIA’s Candle Shadows and Volume: A Tactical Perspective

The recent NVIDIA chart displays significant technical activity around critical levels. The shadow on the 1D chart, particularly below $140, signals buying interest. Key observations include:
1. Shadow Analysis: The large lower wick on the most recent candlestick tested $140 but closed above $142. This suggests buyers stepped in to defend this zone, creating a rebound effect.
2. Volume Surge: The day closed with over 300M in volume, a spike compared to the 20-day average of 200M, indicating heightened activity and interest in the $140-$142 range.
3. Historical Levels: A similar shadow pattern occurred on October 13, when the price tested $132 but quickly recovered. These areas are emerging as reliable demand zones for short-term trading.
4. Key Levels:
• Resistance: $148 remains a tough level, marked by rejection candles with upper shadows.
• Support: $140 is holding, with buyers repeatedly absorbing sell pressure.

Consideration
If the next candlestick closes above $145 with lower volume, it may signal a lack of selling pressure and confirm a short-term bullish reversal. However, a break below $140 with continued high volume could trigger further downside to $135.