Why I Sold NVIDIA (NVDA) at $140.84 Using Technical Analysis
1. Resistance Near $140-$145 📉
My chart shows that NVIDIA previously faced resistance around $140-$145. Selling near this level made sense as resistance zones often lead to pullbacks, especially after a strong rally. Taking profit before a potential retracement was a strategic move.
2. Parabolic SAR Signals a Possible Reversal 🔄
The Parabolic SAR dots were above the price, indicating that momentum might be shifting downward. This suggests that the stock could be losing bullish strength, making it a good time to lock in profits.
3. Overbought DMI and ADX Levels 🚨
• PDI (Positive Directional Index) = 38.61
• MDI (Negative Directional Index) = 12.76
• ADX (Trend Strength) = 31.30 (high, but showing signs of leveling off)
A high PDI and ADX above 30 suggest a strong uptrend, but when the ADX starts to flatten or decline, it can indicate that the trend is losing momentum. Since I saw this happening, I decided to take profits before a potential drop.
4. Trendline Shows a Clear Upward Spike 📈
The blue trendline shows a sharp rally from $113 to $140, which is a fast move upward. Stocks rarely go straight up without a pullback, and this rapid ascent signaled that profit-taking might soon occur. Selling near the top of this rally helped me capture gains before a reversal.
5. Multiple “S” Sell Signals Appeared 🚨
The chart displayed multiple red “S” markers, indicating algorithmic or system-generated sell signals. When these appear at resistance levels, it confirms that selling pressure is increasing. This further reinforced my decision to exit at $140.84.
Final Verdict
Selling at $140.84 was based on resistance levels, Parabolic SAR signals, a high ADX trend that was flattening, a sharp upward spike in price, and algorithmic sell signals. If NVIDIA retraces, I might look for a re-entry around $125-$130, depending on future price action.@TigerTradingNotes @MillionaireTiger @TigerStars @Daily_Discussion @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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