NVDA cap 235 hit

Cap: close under is a hit. Close on the level is a push. Graded on the regular-session close.

A cap is a price above the market where a large amount of options positioning sits. The idea is that this positioning can slow a move up there, so the test is simple: does the stock close under it? When it was posted at 19:08 ET, NVDA traded at 230.57, 1.9% below the cap. On the same map, the next level above was 240 and the next level below was 230. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 3.15 away (231.85); the session range was 229.27 to 231.85. In the last hour price moved down 0.38, from 229.66 to 229.28.

The regular-session close was 229.34, 5.66 (2.41%) under the cap at 235. Under the rule (cap: close under is a hit), that is a hit.

NVDA finished the day down 0.5%, while SPY was up 0.6%. We found no single clear company-specific catalyst for the day in our notes.