A New Daily Low

Nvidia fails to break above Tuesday’s, 2/18 high; instead, prints two (new) daily lows in a row.

In addition, if this action holds, it’s now posting a weekly reversal bar.

This analysis, link here, was early in its assessment.

With new daily lows and potential weekly reversal, probabilities favor continued downside (not advice, not a recommendation).

Nvidia NVDA, Daily

Price action opened higher … therefore painting probabilities for more upside (as postulated in yesterday’s update); it didn’t happen.

So, we’re at the potential right side of a channel. The two magenta arrows show contact points

If this channel is in-effect (i.e., correct), then demand, the lower channel line, is a long way away.

Positioning

Naturally, with all of the above, a short was opened early in the session via SOXS (not advice, not a recommendation).

Trade: SOXS-25-08, stop at the SOXS low, for the day.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279