📈 Semis Bounce

Is this the start of a bottom?

Nvidia Price Action

Yesterday we saw some stabilization in the market after a wild Monday. For those trading Nvidia, it was a very tricky day.

We took out a lower low in the morning to take out as many stop losses as possible only to close at the high of the day and into the gap.

While this is a sign of progress, it doesn’t mean that we are out of the woods yet.

At the time of writing this, ASML earnings have not been released, which will be a major determinant of how NVDA acts today.

With the action we saw yesterday, we are currently holding above the 200 SMA. I recommend that you use this as a demarcation line for trading NVDA, as this is what institutions will be using.

We really need to hold the 200 SMA or else you can see continuation to the downside.

Also keep in mind that we still don’t know the full story of DeepSeek and how it is going to impact demand for AI chips, power generation, data centers, etc. Therefore there is always news risk in either direction that we can’t predict.

I dive into research to get you up to date on DeepSeek and what trades are optimal right now in this video: