NVDA nearing key support at 258-260

2022年1月18日

NVDA is one of strongest tech winners from 2020-2021. Long term and perhaps even in the intermediate term (6 months), it's probably right to remain very bullish on this semiconductor / chip stock. It's a play on the metaverse as well.

But with the selloffs continuing this week in the Nasdaq 100, NVDA is now nearing critical support levels at $258-260. If these levels are undercut, then NVDA likely will at likely continue downward within the next week or two and fill the gap at $233-239 (Oct. 25-26, 2021).

ADX / DMI shows NVDA is in a significant downtrend on the daily chart. The +DI crossed below the -DI around January 4, 2022. And the -DI has continued to trend above -DI, which signifies a downtrend continuing.

A reversal could occur, however, at the key support level from the Jan 10, 2022 low. But if a downward breakout occurs, this may work as a bearish play down to about $235. Try a put butterfly to keep risk small especially given that this stock is one of the strongest in firms in the US.

2022年1月19日

註釋

The critical support level of $258-260 was violated today to the downside. NVDA should make progress toward filling the gap at $233-235.

2022年1月20日

註釋

NVDA closed very weakly today, well below my support levels $258-260. This strengthens the argument that a gap fill is imminent. I also ran a Fib extension from the all-time highs of $346 down to $271 and the ensuring bounce—the target using Fib extensions resulted in approx. $239. Full Disclosure: I don't currently have an open trade on NVDA, but I may consider one tomorrow. I would want a bounce into the mid 250s or so. I would choose a lower risk options trade expiring next week around January 26-28. For example, a call credit spread with strikes in the mid 250s (especially during a bounce tomorrow), or a put butterfly, with the middle strike near the target of $235. I'm not a financial advisor, so be sure to DYOR (Do your own research). Cheers!

2022年1月20日

註釋

NVDA is now more than halfway to my $233-239 target. After a rally in the first half of the trading session to approx. $255, NVDA undercut yesterdays lows and went into free fall. I would very much consider taking partial profits tomorrow esp. if the stock falls into the upper 230s.

2022年1月21日

交易結束：目標達成

NVDA is in the target range of $233-239. Trading around $236 approximately 30 minutes after the open