Counter Trend Trade on NVDA. I went light with only one contract, as counter-trend trades are harder to nail. I am expecting the stock to take a breather and back test previous high. Looks like a 4 to 1 Risk to Reward ratio.
Thesis
RSI is overextended past 70
Noticeable Negative Divergence on the building between price action and RSI.
Large cap stock is up 320% in 8 months.
Buy Volume is decreasing.
VIX at rock bottom support.
A large gap that will eventually fill.
Thesis
RSI is overextended past 70
Noticeable Negative Divergence on the building between price action and RSI.
Large cap stock is up 320% in 8 months.
Buy Volume is decreasing.
VIX at rock bottom support.
A large gap that will eventually fill.