Idea to swing trade on 2 tickers.

NVDA

NVDA on Daily Timeframe created a bearish divergence. The price made a higher high on 20/06/2023 in comparison to its previous high of $419 on 05/30/2023. Similarly, it created a lower high on RSI in comparison to its previous high of 85 on 05/30. Divergence of this kind usually turns out to be bearish, the price drops from that point. 

Here, the pattern can be traded by looking at the consolidation zone it has formed at the ATH. The price consolidated in the range of $420.80 to $439.90. The direction of the trade can be identified when the price breaks out of this range on either side. As there is a bearish divergence formed on the Daily timeframe, I would be looking to sell the security, once it breaks down $420. 

When the price formed a new high of $419 on 05/30, it retraced to price $373 and created a demand imbalance to make a new ATH. Therefore, the first target can be the Demand Zone of $373 to $385. If the price breaks below the demand zone, there is a big Gap till $318 that is to be filled. Sometimes the gaps are filled quickly, sometimes it takes more time to get filled. So, it cannot be said that the gap will be filled here at once. However, I would go with $367, with putting on a Fibonacci retracement tool, as my second target for this trade.

 

AMD

Most of the time AMD follows NVDA because they are in the same sector and events, news and risks are similar to both the tickers. Even this time it seems to be on the same path. AMD; however, seems to be in the lead on this path. It had a bearish divergence on 4H time-frame on  it, when it created a new high of $132.81 on 06/13/2023. The price dropped to almost 19% from the high. 

Now it has formed a Double Top pattern at a higher price level. The pattern can be clearly seen in the picture above. The price can directly drop to the demand zone seen in the picture; however, the RSI says its near to being oversold. If the double Top pattern is followed by AMD, it will head to retest the neckline, around $115, which will act as a supply for the ticker and the price will continue to drop till it finds the Demand. 

The first zone that can act as a demand is the zone from where the price broke above to make these two high. This zone was previously acting as a supply zone for AMD, and it retraced almost 20% to $81. Zone $77 - $80 seems to be a major demand for this stock if it drops this low. 

All in all, I am bearish on these tickers for a time-being. I will keep a watch on the market trend, especially this sector to trade these 2 securities.