NVIDIA Inventory Worth Prediction (and a Contrarian Swing Lengthy Coming Quickly)

TradeCompass for NVIDIA Inventory: Contrarian Lengthy Alternative Amid Pre-Market Decline

On the time of this evaluation, NVIDIA (NVDA) is buying and selling at $128.40, down practically 10% in pre-market from Friday’s shut. This presents an intriguing contrarian lengthy alternative for swing merchants, leveraging key assist ranges from historic worth areas and VWAP deviations. Under is an in depth commerce concept based mostly on quantity profile evaluation:

Commerce Setup

Entry Ranges (Equal Buys):

1. 127.25 – Close to the worth space low (VAL) from December 19th and October seventh, in addition to near the pivot level shaped on December 18th.
2. 125.93 – Strategically positioned between the primary purchase degree and the third decrease VWAP deviation of December 20th, including extra assist to the zone.
3. 124.67 – Close to the prolonged assist across the third decrease VWAP deviation from December 20th.

Cease Loss:

• 122.67 – Positioned $2 beneath the ultimate purchase degree, making certain outlined threat whereas permitting room for volatility.

Revenue Targets (Partial Earnings Inspired):

1. 129.93 – Slightly below the worth space low (VAL) of January 14th.
2. 132.62 – Near the worth space excessive (VAH) of January 27th.
3. 138.86 – Below the VWAP from January 21st and close to the $140 spherical quantity, providing a logical resistance degree for a runner.

Execution Notes:

• Equal Allocation: Purchase 100 shares at every of the degrees: 127.25, 125.93, and 124.67.
• Danger-Reward: The cease loss at 122.67 ensures a manageable draw back, whereas the profit-taking construction emphasizes maximizing features with partial earnings and leaving a runner for a possible bigger transfer.

The Logic Behind the NVDA Inventory Plan

1. Quantity Profile Help Zones:

   • The degrees between 127.25 and 124.25 align with historic worth areas and pivots, making this zone a vital space of prolonged assist.

2. VWAP Deviations:

   • The third decrease VWAP deviation from December 20th close to 124.25 provides further technical backing, marking an space the place value is statistically overextended.

3. Pre-Earnings Setup:

   • Swing merchants can profit from a possible restoration bounce forward of NVIDIA’s earnings, leaving flexibility to both shut out the commerce absolutely or maintain part of the Lengthy (after taking partial earnings earlier than the earnings scheduled on 26 Feb 2025), AKA ‘runner’ into the report. Once more, at your threat solely. Do your individual analysis and deal with that is an opinion and doable orientation.

4. Danger Administration and Partial Earnings:

   • The TradeCompass strategy emphasizes managing threat and taking earnings at key ranges to keep away from disappointment from missed targets, whereas permitting a portion of the commerce to profit from bigger strikes.

TradeCompass Takeaway

This contrarian lengthy commerce concept offers a structured strategy to capitalize on NVIDIA’s pre-market weak point, concentrating on a restoration towards key ranges. Whereas this evaluation provides a framework for swing merchants, execution and threat selections are solely as much as the dealer.

Commerce at your individual threat, and keep tuned for extra TradeCompass insights!

This text was written by Itai Levitan at www.ubaidahsan.com.



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