Stock of the day: Nvidia

In today’s stock of the day, our spotlight returns to NVIDIA, a tech giant that recently rode a wave of optimism. For several months, this semiconductor powerhouse has been ascending the stock market stairs, boasting impressive gains and showcasing resilience. However, September paints a contrasting picture for NVIDIA. This month’s chart has predominantly been shadowed by bearish undertones, right from its commencement.

The technical layout reveals an imposing triple top formation, highlighted with a green shade. This pattern, typically seen as a bearish reversal, suggests the potential exhaustion of a preceding uptrend. Currently, NVIDIA’s stock is trending downwards, making its way towards the formation’s neckline, delineated in yellow. Intriguingly, this neckline coincides with the 23.6% Fibonacci retracement level, making it a critical junction for the stock.

A decisive breach below this yellow support zone could spell trouble for the bulls. Should NVIDIA’s stock price puncture through, traders might interpret it as a compelling sell signal, with the immediate bearish target pivoting around the 38.2% Fibonacci level.

But that’s not the only red flag NVIDIA’s technicals are hoisting. Adding to the bearish sentiment is the fact that the price has recently slipped below a long-standing uptrend line, illustrated in red on the charts. This line has supported NVIDIA’s upward trajectory for quite a while, and its violation only reinforces the pessimistic outlook.

To sum it up, if NVIDIA’s stock price plummets beneath the yellow support, traders could witness a robust bearish momentum. With multiple technical indicators aligning in favor of the bears, the onus is on the bulls to defend the crucial support zones and revive the previous uptrend. Only time will reveal how this tug-of-war between bulls and bears unfolds for NVIDIA.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-nvidia-3