NVDA broke its important support of psychological level 270 and closed on Thursday 1/13/22 below that level. Friday morning, we gapped down in to low 260's before the broader market started to cover shorts back above the 270 level, in which bulls and bears proceeded to have a battle for that important level into the EOD. Unfortunately, NVDA still closed below 270.
We did have a break of 270 prior to this only to close above 270, but yesterday 1/14/22 was different (official close < 270).
On the daily (broader) pattern, this bullish support seems to have now turned resistance.
After a bearish close Thursday, there was a backtest of the (now) resistance, and it looks to be heading down.
Depending on market conditions, a hedge for 02/18/22 250p seems to be a good idea here because NVDA does have a gap to fill around the 231 mark.
If broader market holds up, and NVDA gets a decent close above 270, obviously this play is invalid.
We did have a break of 270 prior to this only to close above 270, but yesterday 1/14/22 was different (official close < 270).
On the daily (broader) pattern, this bullish support seems to have now turned resistance.
After a bearish close Thursday, there was a backtest of the (now) resistance, and it looks to be heading down.
Depending on market conditions, a hedge for 02/18/22 250p seems to be a good idea here because NVDA does have a gap to fill around the 231 mark.
If broader market holds up, and NVDA gets a decent close above 270, obviously this play is invalid.
Market as a whole (especially QQQ) puked on a decently sized dVOL (down volume) day, and NVDA is one of the top holdings of QQQ, so it followed suit.
It closed below 260 today as a psychological level. Depending on how the market reacts tomorrow and into OPEX, it might be worth holding if anybody played this put hedge.