NVIDIA

NVDA Approaching Premium Supply – Breakout or Double Top?

102
📊 Market Breakdown
NVDA is trading at $182.70 and pressing into the Premium/Supply Zone ($184.36). The stock is riding a strong ascending wedge pattern, but with RSI at 69.70 (near overbought) and price stretched from the equilibrium, we’re at a critical decision point.

Trend: Strong uptrend from the $123–$135 base, breaking above previous highs.

Key Structure: Price launched from the equilibrium zone (~$135), skipping retests and heading straight toward supply.

Volume: Recent push has healthy volume, but we’re starting to see signs of slowing.

Indicators:

MACD: Bullish but momentum is flattening.

RSI: 69.70 – close to overbought, increasing risk of pullback.

🛒 CALLS (Bullish Scenario)
Buy Zones:

🎯 Aggressive Entry: Bounce from $175–$178 support within wedge

✅ Confirmation Entry: Break & daily close above $185 with volume

Take Profits:
1️⃣ $195 – Psychological round number
2️⃣ $210 – Wedge breakout target
3️⃣ $225 – Extension target if momentum remains strong

Stop-Loss: $172

Why This Works: Breakout above $185 clears supply and could spark a momentum run to $195+ in 2–3 weeks.

🛑 PUTS (Bearish Scenario)
Sell Zones:

🚨 Aggressive Entry: Rejection at $184–$185 supply zone

📉 Breakdown Entry: Close below $175 support

Take Profits:
1️⃣ $160 – Mid-wedge support
2️⃣ $135 – Equilibrium zone
3️⃣ $123 – Major prior demand

Stop-Loss: $188

Why This Works: Rejection at supply with overbought RSI could send NVDA back toward $160–$135 in 1–2 weeks.

🔍 Technical Highlights
Pattern: Ascending wedge nearing apex; breakout or breakdown imminent.

Supply Zone Test: $185 is a key resistance level; watch reaction closely.

Macro Watch: NVDA is highly sensitive to AI sector momentum and NASDAQ performance.

⏳ Option Expiration Strategy:

1 Week: Rejection play off $185

2–3 Weeks: Breakout targeting $195–$210

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