In today’s stock of the day, let’s take a look at Nvidia, which is showing a very structured and interesting setup.
Since November, the price has been moving sideways inside a rectangle pattern marked with green lines. This kind of price action typically represents an accumulation phase, where larger players build positions.
In March, we saw a breakout to the downside, marked in red. However, this move did not continue and quickly reversed. That makes it a classic false breakout, also known as manipulation.
After this move, the price returned back inside the rectangle. This is a key moment because it often signals a transition into the next phase of the cycle.
From an ICT perspective, this fits well into the Power of Three concept:
-
Accumulation inside the range
-
Manipulation with the false breakout
-
Distribution, which in this context means expansion of the price
Right now, we are in that final phase, marked with yellow. Despite the name, this stage typically leads to a directional move, and in this case, the structure suggests an upward expansion.
As long as the price holds within or above the range, sentiment remains positive. The false breakdown strengthens the bullish case, as it trapped sellers and cleared liquidity below the range.
So overall, the setup points toward a continuation to the upside and builds a case for a longer-term buy scenario.