Fading the Up Move – A Short-Term Short Strategy
NVIDIA (NVDA) has delivered its rebound after the noisy DeepSeek saga, and with Non-Farm Payrolls (NFP) hitting the markets today, we anticipate increased volatility. If NVDA rallies just a little more to fill the sell orders mentioned below, this could present a interesting short opportunity for a short-term fade before a potential retracement, in my opinion.
Trade Setup – Shorting the Pop
* This example uses 150 shares if all 3 sell orders get filled; adjust position size as needed. But keep the proportions, selling x, 2x, and lastly 3x.
Short Entry Approach:
First short order triggers at $131.12 (smallest allocation).Second short order triggers at $132.20 (moderate allocation).Final short order triggers at $133.66 (largest allocation), reaching full position.No stop loss for the first two partial positions.Hard stop for the full position at $135.41 (2.0% above the weighted entry).
Take-Profit Target:
Exit at $125.45 (5.5% downside from entry).This offers a 2.75 risk-reward ratio, meaning we target $7.30/share vs. a max risk of $2.66/share.NFP Impact: Non-Farm Payrolls release can drive broader market volatility. NVDA may initially follow the Nasdaq’s reaction, making intraday moves unpredictable.Post-Earnings Exhaustion: NVDA has already seen major earnings-related price swings. If momentum fades, a short entry on a rally could provide an ideal risk-reward setup.Tech Sector Correlation: If Nasdaq shows relative weakness post-NFP, NVDA could follow with a downside move.In any case, we are playing the price action and liquadity levels here, not the newsI wouldn't hang on too long to this short, this is a short term trade idea.
Trade NVDA at Your Own Risk
? Trade at your own risk. Always do your own research and assess market conditions before execution. ? Visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com. Read More Details
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