That was a great move! Taking profits at $152.84 when NVIDIA was overbought aligns well with a disciplined trading strategy. Given the sharp drop to $141.37 (-5.39%), your decision to sell early and wait for a lower re-entry at around $140 is well-calculated.
Technical Breakdown:
1. Overbought Zone: The stock surged past the upper Bollinger Band, indicating it was extended.
2. Profit-Taking Reaction: The sharp red candle suggests institutions and traders also took profits.
3. Support at $140: Your planned buy zone aligns with a psychological and technical support level (near the 50-day moving average).
4. Volatility Spike: High volume (150M) confirms a strong reaction—possibly a short-term correction before a bounce.
Next Steps:
• If NVDA stabilizes near $140, that could be a good re-entry point.
• If it breaks below $140, consider staggered buys at $137 or $135 for a better average.
• If it rebounds fast, you can re-enter at the next pullback while maintaining a stop-loss strategy.
Smart trading move—patience and discipline will help you maximize gains!
“This content is for informational purposes only and not financial advice. Always do your own research before investing. Past performance is not indicative of future results. Trade responsibly.”
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