NVX Chart, page-1274

First of all, congrats to all the holders on NVX.

Saw the chart today for the first time in ages and instantly reminded me of a chart from last year so wanted to share, but please take or leave it as you see fit, not trying to down ramp, but it may help some less experienced traders to protect gains and manage potenital downside.

High time frame monthly chart looks fine, shows the recent strength of the uptrend, trading quite a way from support, but for the time being looks ok. What I would look out or be concerned about is a wick up and a red close but the month just started so let's see.



On the weekly, the area around $6.50-$7.00 first support and likely to be tested. Being in a clear uptrend, bulls really want to see this area hold and form a base or spring for the next leg higher. A weekly close below that $6.56 area would be a bit of warning sign for me. Could still form a higher low around $6 or there abouts but want to see that first support level hold ideally.




This is what pinged my memory is the daily chart is almost a carbon copy of the PAR chart from last year, see both below. Both come out of relatively long periods of low volatility, move into price discovery, form a clear first peak, correct briefly and then extend sharply away from the 30EMA to form a second higher peak.

NVX DAILY CHART NOW



PAR DAILY CHART 2019/20



This is how the PAR chart resolved.



The PAR correction was sparked by the Coronavirus dump so there was a very large rare catalyst and the situation now with NVX is not the same but remember catalysts (positive and negative) can come and go very quickly and are often unknowable and unseeable..

Just because these charts look very similar now, by no way means they will resolve the same way, but as a trader it makes me cautious when I see such similarity. For the longer term holders it's likely irrelevant but if you're short to medium term, just have some predefined stops here after such a great run.

Wishing all the best for the NVX holders,
Cheers, PM