NVDA (NVIDIA Corp) offers an objective short entry on today’s gap down as that has the potential to form an Island Cluster Reversal topping pattern. NVDA will be added as an Active Short Trade here on today’s gap down with price targets at 160.35 (T1) and 142.10 (T2). The suggested stop is any move above 191.00 with a suggested beta-adjustment of 0.90.
NVDA daily Sept 21st
The potential for an Island Cluster Reversal topping pattern on NVIDIA was mentioned in the trading room yesterday if the stock were to gap down & remain below the “cluster” of candlesticks that were formed following Monday’s gap up. I am still using the operative word “potential” Island Cluster top because the day is still young & should NVDA move back above the bottom of the cluster then the pattern will be foiled. As such, an entry here should be considered somewhat aggressive or anticipatory, with a more conventional entry just before the close today or sometime tomorrow, should the stock fail to fully backfill (and then some) the gap just overhead.