NVDA traders and investors, machines just stepped in at NVIDIA's (NVDA) anchored VWAP, drawn from the Feb 3 major low (~$130.24). As price pulled back, algo-driven buying emerged, reinforcing this level as key support.
Anchored VWAP held on first test—suggesting institutional interest.If price holds above $130, momentum could rebuild toward $138-$142.A break below $130 would shift focus to lower support zones.
? Now Watching: Will this level hold or break? With earnings in 2 days (Feb 26), expect volatility. Stay alert for confirmation or failure at this VWAP zone. ?
What is Anchored VWAP?
How is Anchored VWAP Calculated?
AVWAP=∑(Price×Volume)∑VolumeAVWAP=frac{sum (Price times Volume)}{sum Volume}
Where:
Price is the trade price at each transaction.Volume represents the number of shares/contracts traded.The summation is cumulative from the chosen "anchor point" forward.Why Does Anchored VWAP Matter?
? Key Reasons Why AVWAP is Important:
Institutional Benchmark: Many hedge funds, mutual funds, and trading algorithms use AVWAP to assess whether they are buying or selling at a favorable price relative to average transaction cost.Support & Resistance Zones: If price is trading above Anchored VWAP, it suggests buyers are in control; if price falls below it, sellers may be dominant.Liquidity & Mean Reversion: Price often gravitates toward AVWAP, acting as a magnet for liquidity where large players accumulate or distribute shares.Breakout & Retest Confirmation: When price crosses AVWAP with strong volume, it can signal a sustained breakout. Conversely, a failure to hold AVWAP may indicate trend weakness.Event-Based Trading: Anchoring VWAP to earnings reports, FOMC meetings, or major highs/lows provides context for how market participants are positioned.In the current NVDA setup, AVWAP is anchored to the major Feb 3 low (~$130.24). As price revisits this level, algos and institutional players appear to be defending it. If it holds, we may see buyers step in for a potential continuation move. However, a breakdown below AVWAP could signal weaker momentum and further downside risk.
? Key Level to Watch: Will the AVWAP Support Hold or Break? With earnings in two days (Feb 26), NVDA’s reaction to this level will be crucial in shaping short-term price action. Visit ForexLive.com for more updates.
This article was written by Itai Levitan at www.forexlive.com. Read More Details
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