Post Trade Review

This morning, there was no significant news on NVDA in the premarket, and it was trading on lower relative volume. However, we were near the all-time high of $133.79. Although I wasn’t actively monitoring NVDA, I set an alert around this level to notify me if the stock approached it.

Around 11 AM, Wells Fargo raised their price target on NVDA to $155. While I don’t consider this a strong catalyst, it is positive bullish news. I noticed NVDA had made a strong move up and tested the all-time high but initially failed to break through. The stock then consolidated in a range for about 1.5 hours.

Eventually, NVDA broke through the all-time high on massive volume. I didn’t wait for a retest, and instead immediately entered a position, anticipating a significant move. The stock performed well, and I took off 3/4 of my position at $134.40 when it broke through the 9 EMA. I held onto the remaining 1/4 of the position with a stop set below the break of the all-time high.

Although I planned to hold this trade all day, I accidentally closed out my position due to a computer issue. This turned out to be fortunate, as the price declined afterward. Had I held the trade until the close, I would have sold my remaining shares at around the same price I accidentally exited.

Overall, I do not have much to say about this trade. I think it was a smart play, and in the future, higher RVOL would probably allow me to size up.