NVIDIA Buy-The-Dip Tactical Plan – Post-Earnings Decline
Summary & Execution Plan
- No initial trade before earnings: The plan before NVDA earnings was to wait for price to reach key levels—either a sell zone or a buy zone—before making a move.
- Now at the Buy Zone: NVIDIA has declined, reaching key support levels, making it attractive for a tactical long trade with scaled entries and controlled risk.
- Volume Profile Insights:
- $116.70 – Key Point of Control (POC) from Feb 3rd and Value Area Low (VAL) from Jan 27th.
- Expectations: Market-making algorithms and institutions may step in here, either covering profitable shorts or initiating new long positions.
Buy Structure & Position Scaling for This Nvidia Stock Buy Idea (at your own risk only)
- Buy 1: $116.83 (100 shares)
- Buy 2: $115.54 (200 shares)
- Buy 3: $114.52 (300 shares)
- Weighted Average Entry Price: $115.25
- Total Position Size: 600 shares
- Proportions: 1x – 2x – 3x scaling ensures cost efficiency & flexibility.
Risk-Reward Strategy on NVDA Long
- Stop Loss: $112.81 (-2.11%) → Risk: -$1,459
- Take Profit: $122.59 (+6.37%) → Gain: $4,404.66
- Risk-Reward Ratio: 3.02
Consider leaving a ‘runner’ if hitting the profit target
- Runner Strategy:
- If the Take Profit target ($122.59) is hit, consider leaving 20% of the position (120 shares) for a longer-term hold.
- Move stop-loss to entry price ($115.25) once price exceeds $122.59, making the remaining position risk-free.
- Short-Term vs. Long-Term View:
- This is a tactical swing trade rather than a long-term investment.
- If NVIDIA confirms a major low, more of the position could be retained.
Final Thoughts on This Short-Term Swing Long on NVDA
- This is not an aggressive Buy-the-Dip call assuming a bottom.
- It’s a calculated swing trade with strong volume profile support levels backing the decision.
- Risk is defined, reward is attractive, and scaling ensures optimal entry.
- Outcome will depend on market reaction at key levels.
⚠ Disclaimer: This is an orientation, not financial advice. Always conduct your own research and manage your risk appropriately.
This article was written by Itai Levitan at www.forexlive.com.
