Technical Analysis – Nvidia stock still looks gloomy after 30-month low
Nvidia stock opened the week with a sharp gap lower to hit a 30-month low, ending Monday’s session in the red and slightly below the 61.8% Fibonacci retracement of the 2020 uptrend at 141.15.
The price is currently positioned around the May 2021 support area of 134.55, and while oversold signals are strengthening as the RSI is flirting with the 30 level and the stochastics are clearly below 20, a close below that base could prompt a continuation towards the 122.32 – 115.65 zone, which has been a more important floor during the 2020-2021 period. If the sell-off further stretches from here, the bearish wave could exacerbate towards the channel’s lower band seen around the 100 psychological mark.
Alternatively, a return above the 61.8% Fibonacci of 141.15 may retest the 155.15 handle before challenging the 20- and 50-day simple moving averages (SMAs), which are both converging to 168.95. Breaching that wall, the bulls may speed up to the August peak of 192.14, while a more aggressive rally above the 50% Fibonacci of 196.09 may set a new battle at the channel’s surface somewhere between 200 and 210.
In short, the Nvidia tech stock keeps reflecting a gloomy outlook as the short-term risk remains tilted to the downside, although some stabilization or an upside correction might be around the corner given the oversold conditions in the market.Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
