NVDA Overdone or Going Lower?

By Licia Leslie

January 8, 2025

Hi Shoppers,


After a very nice three day rally, Nvidia (Ticker: NVDA) made a major reversal taking it down 6% creating a large bearish candle:

It closed right on support of the median line and the 50 day moving average.

 

So this morning I will be watching for one of three things the stock will do.

 

  1. Gap open higher and trade within that candle making it an inside day or a harami candle that could negate this down move. (Be sure to wait for the confirmation of the stock trading higher tomorrow before jumping in.)
  2. Open right around here (the support level) and then continue to sell off at which point I will be watching the five minute chart to hop into some near term puts.
  3. Consolidate here for a couple of days before making a move.

 

Don’t forget we have the Fed minutes coming out today also so be on your toes.

 

Thank You For Reading … See You Next Tuesday,

 

Licia Leslie

Licia Leslie

Head of Technical Analysis

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Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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