Broken resistance turns into support. This is a classis tenet of technical analysis. Nvidia (NVDA) broke resistance around 12-12.5 in July and returned to this breakout area in late October. Notice that I drew a zone. Support and resistance levels are rarely exact. With a gap and surge today, Nvidia is trying to break channel resistance.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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