Potential Reversal Zone for NVDA

3 giu

This chart of NVIDIA Corporation (NVDA) as of June 3, 2025, shows a technical analysis scenario forecasting a possible bearish reversal. The price action, zones, and arrows suggest a setup based on supply and demand zones.

Key Elements in the Chart:
🔴 Supply Zone (Resistance Area)
Location: Around $141.73 to ~$144

Observation: The price recently entered this red-shaded area, indicating strong historical resistance.

Implication: The area is expected to act as a ceiling, where sellers may overwhelm buyers, causing a reversal.

⚫ Price Reaction:
The chart shows price approaching and briefly piercing the supply zone, followed by a bearish candle or rejection (as indicated by the top arrow).

Arrows project a downward movement, suggesting bearish sentiment.

🟢 Demand Zone (Support Area)
Location: Approximately $114–$121

Observation: This green-shaded area acted as a base for a previous upward move.

Implication: It is likely to act as a strong support if the price drops significantly.

Projected Price Path:
Short-term reversal from the resistance zone (~$144).

Initial drop to mid $130s (likely a lower high or minor support).

Continuation to demand zone around $116, completing the projected bearish move.

Technical Interpretation:
This setup is a classic supply and demand reversal strategy.

Confirmation of the short setup may require:

A clear rejection candle at resistance.

Break of minor support levels on the way down.

Risk for bulls is high near resistance; short sellers may find opportunities targeting the demand zone.

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