Nvidia (NVDA) Stock Faces Trouble Ahead: Historical Analysis
Nvidia's Current Market Challenges
Nvidia (NASDAQ: NVDA) investors are bracing for potential challenges as bearish sentiments intensify. Currently trading at $106, Nvidia's stock has seen minimal gains. However, on the monthly chart, the stock is down over 2%, signaling potential trouble.
Bearish Outlook Analysis
Trading expert TradingShot highlights a troubling trend with a three-month pullback for NVDA. This marks its first monthly decline since late 2023, suggesting a potential precursor to more significant downturns.
- Resistance Level: A critical resistance level around $116 must be broken for recovery.
- Technical Indicators: Investors should monitor the one-month moving average convergence divergence (MACD) for bearish cross signals.
- Historical Corrections: Past bearish crosses have led to significant stock drops.
Potential Future Trends
Experts caution that if the current cycle follows historical patterns, significant corrections could manifest by late 2024. Despite the bearish outlook, analysts maintain a bullish forecast with a strong buy recommendation, projecting an average price target of $149 over the next 12 months, driven by Nvidia’s strength in the AI market.
Keep a close watch on Nvidia's movement as it navigates these tumultuous waters.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.