NVDA - Setting up (to Long)

The semicons have been rising quite steadily since hitting the lows in mid October.

NVDA has risen 63% from it's low in October and is now flirting with the 200 day Moving Average and a neckline resistence. Last Friday's candle was an inverted hammer which suggests it could consolidate below the neckline for a while more.

With overall market momentum lacking, we are also seeing a fair number of false breakups. Hence always trade a breakup with only "test" positions with tight initial stops just slightly below the breakup levels.

A more conservative trader would probably wait for the first pullback from the break up, ensure that the pullback do not invalidate the breakup (eg any pullback that went back below neckline) and then wait to buy the break high of the initial break up (point 4 on daily chart). While this means we are buying at a high level, it also help us avoid many fake breakups which a weak market is often fraud with.

Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!