Technical Analysis – Nvidia stock retreats but remains in an uptrend, for now
September 27, 2023 9:25 am
Nvidia stock has retreated 16% from its August record highs
Uptrend remains intact, but drop under 402.00 can change that
Huge earnings gap below is a clear risk if market moves lower
Nvidia shares have moved sharply lower since reaching a new record high in late August. Yet, the price structure of higher highs and higher lows has not been violated yet, which suggests that the market remains in an uptrend. That said, any declines below the crucial 402.00 zone would shift the outlook back to neutral, likely setting the stage for further losses.
Momentum oscillators reflect the recent retreat, with the RSI stuck below its 50 threshold and the MACD falling further below its red trigger line in negative territory.
If sellers remain in control and manage to push prices below the critical 402.00 region, marking a lower low on the daily chart, that could be the catalyst for declines towards the 373.00 area. Any further losses would turn the spotlight on the massive earnings gap from May, whose lower boundary is located near the 200-day moving average (MA), currently at 317.00.
Now in case buyers retake the wheel, the first obstacle on the upside might be the 438.00 zone, which has served both as resistance and support this year. If the bulls pierce through that, their next target could be the 50-day MA at 450.00, before a bigger battle takes place around the August peak of 498.00.
All told, Nvidia is still in an uptrend, but traders need to monitor the price action around the 402.00 zone for any signs that this trend is breaking down.
Nvidia stock has retreated 16% from its August record highs
Uptrend remains intact, but drop under 402.00 can change that
Huge earnings gap below is a clear risk if market moves lower
Nvidia shares have moved sharply lower since reaching a new record high in late August. Yet, the price structure of higher highs and higher lows has not been violated yet, which suggests that the market remains in an uptrend. That said, any declines below the crucial 402.00 zone would shift the outlook back to neutral, likely setting the stage for further losses.
Momentum oscillators reflect the recent retreat, with the RSI stuck below its 50 threshold and the MACD falling further below its red trigger line in negative territory.
If sellers remain in control and manage to push prices below the critical 402.00 region, marking a lower low on the daily chart, that could be the catalyst for declines towards the 373.00 area. Any further losses would turn the spotlight on the massive earnings gap from May, whose lower boundary is located near the 200-day moving average (MA), currently at 317.00.
Now in case buyers retake the wheel, the first obstacle on the upside might be the 438.00 zone, which has served both as resistance and support this year. If the bulls pierce through that, their next target could be the 50-day MA at 450.00, before a bigger battle takes place around the August peak of 498.00.
All told, Nvidia is still in an uptrend, but traders need to monitor the price action around the 402.00 zone for any signs that this trend is breaking down.
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