Over the past few trading sessions, I decided to average up my position in NVDL rather than take profits. While averaging up is often viewed as a more aggressive strategy, I believe the current setup justifies the move. NVDL recently rebounded strongly from its EMA50 trendline support, a level that has historically acted as an important technical floor during bullish phases. The successful defense of this support level suggests that the uptrend remains intact.

Another reason behind my decision is the relative performance of Nvidia itself. While many AI-related stocks have already staged impressive rallies in recent weeks, Nvidia has not participated to the same extent. Several AI infrastructure, software, and data center names have significantly outperformed, leaving Nvidia looking surprisingly quiet despite remaining at the center of the AI revolution. In my view, Nvidia has become a laggard within a sector that it originally helped lead.

Fundamentally, my long-term thesis remains unchanged. Demand for AI computing power continues to grow rapidly, and Nvidia remains the dominant supplier of advanced AI accelerators. As hyperscalers, enterprises, and sovereign AI projects continue expanding their infrastructure investments, I believe Nvidia is still one of the primary beneficiaries of this secular trend. The market may simply be rotating capital temporarily before refocusing on the industry's leader.

Because I expect Nvidia to eventually catch up with the broader AI sector's performance, I chose NVDL as my vehicle of choice. As a leveraged product, NVDL provides amplified exposure to Nvidia's daily price movements. If my thesis proves correct and Nvidia begins closing the performance gap versus other AI leaders, the leverage could significantly enhance returns compared to holding the common stock alone.

Of course, leverage works both ways and increases volatility. For that reason, I view this as a higher-risk tactical position rather than a passive investment. Nevertheless, with Nvidia holding key technical support, AI spending trends remaining robust, and the stock potentially poised to play catch-up, I believe the risk-reward profile remains attractive. That combination ultimately gave me the confidence to average up my NVDL position and position myself for the next potential leg higher.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.   

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