We cover a stock like Nvidia (NVDA) so often for a couple of important reasons.
- It’s a stock in play: This means the market is paying close attention to this stock. Whether that means investors are buying up shares or traders are trading calls/puts on the name. Either way, there is liquidity and someone to buy and sell to.
- There are plenty of setups: If there’s a setup, then there is some reason for us to take a trade on the stock. If there were no good setups, we wouldn’t be bringing up the stock so often. Because it’s a stock in play, however, these setups come far more frequently.
- The stock makes big moves: Not only is the stock worth trading for the previous two reasons, but when this stock gets to moving, it can really move. This makes trading calls or puts on the stock pretty attractive as this moves can be very lucrative for traders.
In addition to all of that, we now have our eyes trained on Nvidia (NVDA) because it is approaching a major level and that level is 400. After the carnage left in the wake of the most recent Fed meeting, we now have stocks looking far weaker than they did to start the week.
Although stocks look weak, we are approaching some key support levels that we could see some bouncing at. Be sure to keep a close eye on price action for NVDA and keep this trade on your watchlist.
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