Nvidia Stock Chart Looks ‘Scary’: Technical Analysis Sees an Imminent Pullback
Nvidia has been riding the AI wave, delivering impressive returns to investors. However, technical analysis suggests that a pullback in the stock’s price is likely in the near future.
Key points:
– Nvidia stock is currently trading in a descending channel, which is typically a bullish pattern. The price is hovering around the 50-day simple moving average, acting as a short-term support level. If this level is broken, a further decline to $400 is expected.
– Depending on the performance of AI stocks and the global macro environment, the price could potentially test the $350 level.
– Despite the potential pullback, Nvidia continues to make strides in the AI industry. The company has received $5 billion in chip orders from Chinese internet giants, and recently unveiled the GH200 Grace Hopper Superchip, designed for business data centers.
– Analysts remain positive on Nvidia, with some setting price targets above $500. The upcoming Q2 earnings report could serve as a catalyst for further price gains.
Hot Take: While technical analysis suggests a pullback, Nvidia’s strong position in the AI market and positive developments in its business indicate long-term potential for growth.
Source: Finbold.
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