NVDA Technical Analysis Summary
In a recent analysis of NVIDIA Corporation (NVDA), the author discusses the current technical landscape of the stock, focusing on key concepts such as "Rotation" and "Negotiation" within the context of price action and volume profiles.
Current Market Bias
The primary bias for NVDA is described as neutral to slightly bullish, indicating that the stock is currently in a decision zone. A significant change in this outlook would occur if the price were to close below the Value Area Low.
Volume Profile Insights
The analysis highlights two quarterly anchored volume profiles, revealing that value has migrated higher from one earnings quarter to the next. However, the price has not yet fully re-accepted this higher value. The older profile centers around a Point of Control (POC) near $182, while the newer profile centers around $188. This upward shift suggests that the market is willing to transact at higher prices, which is structurally constructive.
Current Price Action
As of the analysis, NVDA is trading around $183.34, positioned between the old and new fair-value zones. This situation typically indicates a phase of rotation and negotiation rather than a clear trend. The recent price action shows a selloff that reached the $179 zone, where buyers stepped in, indicating demand at this lower edge. This behavior suggests a failed downside auction attempt, at least for the time being.
Key Levels to Watch
For NVDA to transition from a "repair bounce" to a more bullish stance, it must reclaim the newer quarter's POC at $188 and demonstrate acceptance above the $190-$191 area. If successful, this could lead to further upside towards the $193-$194 range. Conversely, if the price fails to hold above $182 and particularly below $179, it may indicate a failed bounce, potentially leading to a rotation back towards the lower acceptance area around $173-$174.
Understanding Anchored Volume Profile
The article explains the concept of anchored volume profile, which measures where the market has conducted the most business from a specific starting point. This tool helps traders identify price acceptance and rejection, providing context that complements other technical indicators like moving averages.
Conclusion
The analysis concludes that while the quarterly structure remains constructive, the near-term price action is in a re-acceptance test. Key levels to monitor include:
- $182-$183: Older quarter POC / immediate pivot
- $179: Newer quarter lower value support
- $188: Newer quarter POC
- $190-$191: Higher value acceptance trigger
- $193-$194: Next upside rotation zone
- $173-$174: Deeper support / failure zone
The overall sentiment is that NVDA is attempting to repair after a downside flush, and the market is expected to exhibit choppy, two-sided trading until a clearer trend emerges.