September 2 Chart of the Day - Nova Ltd.
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Nova Ltd. (NVMI), a semiconductor process control company, has been getting plenty of attention lately, with some analysts calling it a strong buy.
We question why. A quick look at the charts suggests the timing may not be right just yet.
The charts typically give us important clues.
We'll review the chart from a price action perspective to identify potential levels of interest in both directions.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 600+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
On the monthly chart, NVMI surged to new highs earlier this year, reaching just shy of $292 before reversing sharply.
That reversal has left behind a significant topping wick, a classic sign of a false break out of a previous high.
Current price around $237 is now sitting between key Fibonacci levels, with $223 and
$206 representing potential downside targets should selling pressure continue. For long-term investors, patience may be required until price proves it can stabilize and reclaim lost ground.
With plenty of volatility traders have had much to be happy with while investors seemingly have been disappointed.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, the view comes into sharper focus. The strong run into the $290 area has been followed by a clear corrective leg lower.
Price is now consolidating, but it remains below the $250 zone, showing that sellers still have control for now. The red trendline below highlights the long-term structural uptrend that remains intact, but price could easily revisit the low $200s before finding firmer footing.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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