NVDA expected to break out of range and hit new record highs in the current quarter; upward trend intact.

I said we had another topic. We talked about "Net" and " Now", and now we're talking about " Nvidia". So, let's move on to your third choice from the Big Three. Honestly, it happened by chance, but it's interesting.

Today, yes, we are talking about "Nvidia". It is certainly a name that commands a large following in the market, and has shown some relative strength recently. Once again, I think it's a name that could challenge the upper limit of the trading range during the next quarter.

Therefore, I believe that Nvidia will maintain this upward cycle, and is likely to break out of the range to record new record highs during this quarter.

Okay, Rick. Let's move on to the technical analysis of Nvidia stock then. Do you also see the possibility of another breakthrough as we enter this new quarter? Well, we are approaching a resistance zone.

We are only about 2.7% away from those old record levels. This area here, 236.54, is the highest level the stock has reached . But, below that level, we have not yet been able to get past this area here.

An old peak near 232, plus a series of repeated peaks near 231. So, we have this kind of resistance zone, coupled with gradually decreasing peaks here. However, our upward trend remains intact.

Therefore, there is some tension between the trend we have seen over the past few weeks and the recurring resistance ceiling that we have not yet managed to break through. The gap has been bridged here.

We also had lower levels here around 213 and 207. Here, our moving averages are in an upward pattern, with the faster averages above the slower ones. The moving averages continue to diverge from each other.

Observe it for signs that it might start to converge or change its slope as indicators of a possible change in direction. Our 5-day exponential moving average in dark blue is just above 228, which is consistent with our trend line.

Therefore, if we see a downward move, the 21-day level near 224 is the next potential support point. The Relative Strength Index (RSI ) has started to break through the downward-sloping red trend line here.

Therefore, this would be a positive development if we continue to achieve new relative highs and if the price manages to break through that resistance ceiling . Here, our trading volume profile shows that we have relatively heavy trading volumes in this area between approximately 218 and 225.

That is the most prominent price area for this stock at the moment. So, it's certainly an interesting situation if the king of the market starts to move back towards those new record levels.

Yes, we are now at the 230.50 level. The 52- week range is 230.654. So, we are very close.

Okay Dan, with this technical setup, how will you trade Nvidia stock? Yes, this transaction takes a little longer when looking at this example. I wanted to give her some time here, and also postpone any potential tax implications, if any, until January of next year.

This way, you have a whole year to look into it and manage it. Today’s trade example is buying the spread of a January call option at 230, then selling the call option at 250 , and selling the put option at 215 to fully fund the cost of the call option spread.

It gives you the opportunity to participate from its current level up to 250 during the next quarter, and also creates a protection zone on the decline. If we get to 215, and I think Rick pointed to 213, I mean there's a level below that I saw too.

If we see some weakness and are unable to break through those peaks, and if the price falls below 215, I think that's a good level in the long run as well. It becomes more attractive if we see that weakness.

Again, this creates an area on the downside to enter the stock, and also allows you to take advantage of the current price range up to 250 during the next quarter.

Okay, we'll have an Nvidia earnings event on November 17th. We have to wait a little longer , but he is coming and he is within the scope of that deal.