Last week, we discussed the opportunity of NVIDIA Corporation (NVDA) setting up for another major move higher.
Well, that setup has transpired into a confirmation.
The stock has satisfied not only a daily settlement but also a weekly 1%+ breakout settlement.
For me, one or even both are absolutely necessary to consider a trade entry.
Does the 1%+ rule work all the time? Absolutely not. Nothing is perfect.
But does it add an additional level of reassurance? Absolutely, it most certainly does.
It’s our hope that from this point forward NVDA has a better chance of at least achieving its first target rather than rolling over and hitting its stop level.
Could it continue to accelerate to higher targets? Absolutely.
And depending on your personal trade plan, the decision to stay in the trade and manage your stop would ultimately be up to you.
The Technical Picture
Let’s take a look at the chart and tie all of this together…
As you can see, on March 24th, price confirmed by closing approximately 6% beyond the breakout channel. On a weekly basis, the close on Friday still yielded a 4%+ close.
A daily compounded with a weekly settlement 1%+ breakout equates to a strong, low-risk, high-probability setup.
This trade should accelerate at least towards target #1 at the underside of the black up channel structure.
If it accelerates beyond that, I’ve also indicated a second target above the stocks all-time highs.
However, I would be happy taking my profit at my first target and waiting for the next confirmation to reenter the market.
For those of you who would desire to hold through target #1, I’d move my stop to breakeven once target #1 has been reached and filled.
I’ll be keeping a close eye on this trade as it progresses and will continue to update you all on it.
Join the Alliance
This is the way I set up all my trades, including for my premium investing service, Rapid Wealth Alliance.
The analysis and confirmation approach never changes. Consistency and discipline offer you the chance to trade another day!
If you’re not familiar with the Rapid Wealth Alliance program, I recommend checking it out.
For those of you who are looking to trade, however, that’s not what this service is about.
It’s more about finding great companies, like NVIDIA, with great long-term upside potential.
If you’re looking for investing portfolio ideas, I invite you to join us at Rapid Wealth Alliance to view our model portfolio and join in on our live weekly training sessions!
Rules to Live By
“You can’t stay in your corner of the Forest waiting for others to come to you. You have to go to them sometimes.” A.A. Milne
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.