$NVDA

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The 1-hour chart reveals a distinct bearish breakdown structure, where price action has sharply rejected the upper resistance zone near 171.48 and cascaded downward. Currently, the price is consolidating in a tight range around 161.01, hovering significantly below the major moving averages (MA60 at 167.01 and MA120 at 175.45), which act as dynamic overhead resistance. The MACD indicator confirms this bearish momentum, showing a negative histogram and the signal lines (DIF and DEA) trending downward below the zero line, indicating that sellers are currently in control of the intraday trend.

The most prominent feature is the large bearish marubozu-style candle that initiated the drop from 171.48 down to the 158.39 low, followed by a series of small-bodied doji and spinning top candles. This specific formation at the bottom of the drop represents a Bearish Tasuki Gap or a Falling Three Methods continuation pattern (if viewed on a slightly higher timeframe), but locally, the cluster of small candles represents indecision and consolidation after a sharp sell-off.

My plan is to monitor for a potential "dead cat bounce" or a retest of the breakdown level. I will look for a short entry if the price rallies back toward the MA5/MA10 cluster (around 161.74 - 161.91) and fails to break above the 164.24 (MA30) resistance. Conversely, a confirmed break below the recent low of 158.39 with volume would signal a continuation short. I will avoid long positions until the price reclaims the MA60 (167.01) with conviction.

I predict that NVDA will face stiff resistance in the 162-164 zone and likely drift lower to test the 158.39 support level again. The bearish alignment of the moving averages and the negative MACD suggest that the path of least resistance is downward in the short term. If 158.39 breaks, the next psychological support is around 150.00.

🔴What trade plan I follow and why❓️

I am following a trend-following bearish strategy. The reason is simple: the price is trading below all key short and medium-term moving averages, and the MACD is in bearish territory. Fighting this momentum is risky; therefore, I am looking to sell rallies rather than buy dips until the structure shifts.

🔴When I start my trade❓️

I will initiate a short position if the price retests the 162.84 level (the dotted line resistance) and shows rejection (e.g., a bearish engulfing candle or a long upper wick) on the 15-minute or 1-hour chart. Alternatively, I will enter a momentum short if a 1-hour candle closes definitively below 158.39.

The final verdict is Bearish / Sell on Rallies. The chart shows a clear breakdown from a consolidation phase, and the current price action is merely a pause in the downtrend.

🔴Which candle stick pattern is this❓️

The specific pattern highlighted by the recent price action (the large red candle followed by small green/red candles) is a Bearish Breakaway or a Bearish Continuation Pattern, specifically resembling a Falling Three Methods where the large bearish candle is followed by small indecisive candles that are contained within the range of the large candle, suggesting the market is preparing for another leg down. The very last candle appears to be a Doji, indicating market indecision at the current support level.#USOctoberPPIBelowExpectations