NVDA (Nvidia Corp.) at 14.25 Breaking Out of A Bullish Wedge and 6-month Bear Trendline (BUY)

NVDA broke out of the 5-week bullish wedge pattern (02 Aug high/08 Aug low) which converges with the 6-month bear trendline (from 17 Feb/31 May/01 Jun highs). The breakout confirmed the bullish RSI divergence formed from the 08 Aug to 19 August 2011 lows on the daily chart. While the wedge support (from 02/12 Aug highs) holds, there is scope for bulls to re-open the 15.36 lower high (02 Aug, Resistance 1). Clearance above would extend gains towards 16.26 (05 Jul high, Resistance 2) ahead of 19.96 (01 Jun lower high, Resistance 3). However, a break below 12.38 (06 Sept low) (Support 1) would expose the key 11.65 low (19 Aug YTD low, Support 2) near the wedge support. Sustained weakness below would initiate the next down leg towards 10.36 (07 Oct 2010 low, Support 3).

Trading Indication:
Short-term (Intraday):
Buy at 13.25 or lower;
Target at 16.26 and higher; Stop Loss at 13.00 (2.0%)
Long-term: Possibly sell higher