NVDA Lags Behind the Magnificent 7: Hidden Opportunity or Warning Sign?

While other M7 stocks like $Tesla Motors(TSLA)$ and $Meta Platforms, Inc.(META)$ made new highs, $NVIDIA(NVDA)$ failed to trade higher.

I’m going to do a technical piece on the stock and present it with key levels.

NVDA Daily chart

Technical Analysis of NVIDIA (Daily Chart):

• Head and Shoulders Pattern: A potential bearish head and shoulders pattern is forming, signaling a trend reversal if confirmed.

• Neckline Support at 131: The critical support lies at $131. A decisive breakdown below this level could trigger further downside.

• Projected Support at 120: The uptrend line aligns with a key support at $120. This area could act as the next target if the breakdown occurs.

• Resistance at 140: The $140 level remains a significant resistance zone.

Possible scenarios:

• Bearish if the price breaks below the $131 neckline, with $120 as the next downside target.

• Bullish Rebound only if the $131 level holds and buyers regain control above $140.

Investors can adopt appropriate strategies based on different scenarios that align with their directional outlook.

Short-term trading with DLCs

NVDA DLCs

Investors with a bearish outlook can consider Daily Short DLCs, while those with a bullish outlook can consider Daily Long DLCs.

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