Technical Analysis – Has Nvidia’s rocket rally peaked?
May 31, 2023 3:25 pmVideo
Latest News
- ECB threw a lifeline to the euro April 11, 2024
- Technical Analysis – ETHUSD finds support at 50-day SMA April 11, 2024
- Trading Signals for GOLD (XAU/USD) for April 11-15, 2024: buy above $2,345 (6/8 Murray – symmetrical triangle) April 11, 2024
- EUR/USD: trading scenarios on April 11, 2024 April 11, 2024
- Analysis and trading tips for USD/JPY on April 11 (US session) April 11, 2024
- Analysis and trading tips for GBP/USD on April 11 (US session) April 11, 2024
- Analysis and trading tips for EUR/USD on April 11 (US session) April 11, 2024
- Technical Analysis – USDCAD surges to new almost 5-month high April 11, 2024
- Technical Analysis – EURGBP’s double bottom still waits for confirmation April 11, 2024
- Technical Analysis – US 30 index slides below 50-day SMA April 11, 2024
- Video market update for April 11, 2024 April 11, 2024
- EUR/USD. April 11th. Fed minutes: inflation concerns persist April 11, 2024
- GBP/USD. April 11th. The US inflation report shocked the bulls April 11, 2024
- Technical Analysis – USDCHF unlocks 6-month high April 11, 2024
- Overview of the GBP/USD pair on April 11, 2024 April 11, 2024
- Overview of the EUR/USD pair. April 11th. The market couldn’t hold up after the inflation report April 11, 2024
- Analysis and trading tips for USD/JPY on April 11 April 11, 2024
- What’s behind the US economy’s resilience? – Special Report April 11, 2024
- Technical Analysis – AUDUSD plummets in the US CPI aftermath April 11, 2024
- Technical Analysis – WTI oil pauses rally but remains supported April 11, 2024
Nvidia stock skyrocketed to a record high of 418.59, cashing in on the Artificial Intelligence frenzy and making the company the first chipmaker company to hit a $1 trillion valuation.
The stock’s price has almost quadrupled since October’s low of 107.90 and some profit taking could be possible after the extraordinary rally. The formation of a bearish shooting star candlestick flags a reversal to the downside, though traders will wait to see what the next candlestick will be.
If the stock gaps lower, confirming the negative formation, the price may revisit the 375 support zone. Then, the broken resistance line from February could attract attention around 360. A step lower could initially retest the 2021 top of 345.68 before closing May’s bullish gap. Even lower, the price could seek shelter near the 20-day simple moving average (SMA) at 317.65.
Overbought signals are clear, indicating that the impressive rally is overdone; the RSI seems to have peaked well above 70, while the stochastic oscillator is set to mark a lower high above 80. If bearish signals prove false, the price could bounce higher again to test the record high of 418. Entering the uncharted territory, the uptrend could next stall somewhere between 440 and 450.
In brief, Nvidia’s stock is expected to reverse some of its epic gains in the short term as overbought conditions are evident, with support likely emerging around 375.
Related Posts: