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  • Swing Trade Idea (NVDA) – April 06, 2023

    Apr 06, 2023 Swing Options Tips Comments Off on Swing Trade Idea (NVDA) – April 06, 2023

    Our bearish trade for Thursday, April 6th is NVIDIA Corporation (NVDA). NVDA is part of the Technology Sector, which is showing signs of weakness as it made a new high. NVDA has overperformed relative to its sector over the last month, as XLK (Technology Secor) has already peaked out and is pulling back.

    NVDA has experienced a strong rally since the start of 2023 and has now reached a point of exhaustion as it made a double top at around $280. As this is a counter-trend trade, we believe that NVDA will pullback from this level, over the period of this trade.

    As a close, if NVDA were to trade above $280 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also want to consider cutting losses on this options trade if the value of the vertical spread moves below $5.05.

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