Nvidia has been pulling back from the $190 level since the start of the war and is currently sitting below the 200d sma. Big tech is under pressure from rising oil prices, a stronger dollar and a possible self-induced recession if oil prices remain elevated. I have outlined two balanced area's on the chart; Balance Area #1 and Balance Area #2. I still have a bullish bias on the chart as long as price stays in Balance Area #2. Since late 2022 NVDA stock does not fall below the 40's RSI level very often on the weekly. Therefore there could be a chance we get an oversold bounce soon. If this occurs then I believe we could bounce back up to the 200d ma ($179)- roughly a 7% move. If we do and it rejects then I think it's possible we reject all the back down to the bottom of Balance Area #2 ($149). Or, If you take the top of Balance Area #1 and measure the percent move down to the bottom, it is 41%. The price has moved down 19% since the ATH. If you add another 21% to total the 41% move from Balance Area #1 you get $122; falling outside of Balance Area #2 and about 50% into Balance Area #2. I don't think NVDA is a trade unless it can reclaim the 8d sma (approx. $174).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.