NVIDIA Corporation ($NVDA) has endured a highly bearish (and predictable) trend lately, and has seen the price of its shares drop from $18 to $9 in recent months. $NVDA is now offering another prime selling opportunity – one that could offer the next 18% drop! Here’s why..
Pivot Trend Analysis
During well-defined, trending markets, price tends to be highly predictable in nature. Using pivot-based analysis, you are able to pinpoint pull-back opportunities during these trends, allowing you to enter the market at highly favorable prices.
During the recent downtrend in $NVDA, every pull-back to the month’s Value Area Low (VAL) and the Point of Control (POC) has led to selling pressure, thereby pushing price to lower lows within the current trend.
As a matter of fact, this setup worked perfectly in June and July. Now, price is again testing the month’s VAL, which could lead to another push to new lows within the current trend.
If price cannot rise above the month’s POC at $10.42, we could see another sell-off that leads to a new low at $8. A close below today’s low price of $9.79 will confirm this opportunity.
If you want to read more about the Market Profile levels of VAL and POC, CLICK HERE.
With price remaining within a very determined downtrend recently, the odds are good for at least a shot at prior lows at $8.65…but $8 is a real possibility.
Let’s see what happens!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss