Fall of NVIDIA stock by Tradecompass: Long chance of contrarian in the decline in front of the market
At the time of this analysis, NVIDIA (NVDA) was traded for $ 128.40 and fell by nearly 10% in front of the market from Friday’s closing price. This leverages the main support level from the historical value area and the VWAP deviation to bring a long chance of contrarian to the swing trader. The following is a detailed trading idea based on the volume profile analysis.
Transaction settings
Entry level (equal purchase):
127.25 -It is close to the vicinity of the value of the value area (val) on December 19 and October 7, and the pivot points formed on December 18. 125.93 -It is strategically arranged between the first buying level and the third lower VWAP deviation on December 20, further supporting the additional zone. 124.67 -Close to extension support near the third lowest VWAP deviation from December 20.
Stop loss:
122.67 – Arrange 2 dollars below the final purchase level to ensure the definition of risk while tolerating the room for volatility.
Profit goal (encouraging partial profit):
129.93 – just below the value area of the value area (Val) on January 14. 132.62 -Close to the value area high value (VAH) on January 27. 138.86 -For runners who provide logical resistance levels below VWAP from January 21 and around $ 140 on round numbers.
Executive memo:
Uniform distribution: 127.25, 125.93, and 124.67 purchase 100 shares. Risk Risk Ward: 122.67 stop loss secures managed downs, but the structure of profits is focused on maximizing profits with partial profits and leaving runners. Possibility of greater movement.
Logic behind the NVDA stock plan
Volume Profile Support Zone:
The level between 127.25 and 124.25 matches the historic value area and pivot, which is an important area for expansion support.
VWAP deviation:
The third lowest VWAP deviation from around 124.25 on December 20 provides additional technical support and indicates an area where the price is overly expanding.
Settings before profit:
Swing traders can benefit from the possibility that recovery will recover prior to the revenue of NVIDIA, or to complete the transactions completely or part of the long (scheduled for February 26, 2025 (2025). After the partial profit is determined before, the flexibility to hold (also known as “runner”) is left. Report. Again, I would like at your own risk. Do your own survey and consider this is an opinion and a possibilities.
Risk management and partial profit:
The Tradecompass approach emphasizes risk management and profit confirmation at a major level, avoiding disappointment from being able to achieve the goal, so that some of the transactions can benefit from greater movements. Masu.
Trade compass takeout
This contrarian long trade idea provides a structured approach to use the NVIDIA’s weakness before the market is to recover to a major level. This analysis provides a framework for the swing trader, but the execution and risk decisions are completely up to the trader.
Please do your own responsibility. Please look forward to further insights of Tradecompass!
