Nvidia Faces Potential Downturn Amid Technical Analysis Signals

Nvidia, a leading semiconductor company, is showing signs of a significant downturn according to recent technical analysis.

NVDA has been a standout in the stock market, buoyed by its bets on artificial intelligence (AI) and a recent 10-for-1 stock split, making its shares more accessible.

$NVDA – The weekly candle was a small range shooting star candle. Looking at the last 12 months the last time there was a similar candle when price wasn’t at an all time high, happened in October 2023. Given the two 22% drawdown downtrends this one may bottom around 110. pic.twitter.com/0XUOVXm02o

— CyclesFan (@CyclesFan) July 14, 2024

Currently trading at $129, with a remarkable year-to-date gain of 168%, NVDA’s trajectory has caught the attention of analysts, including CyclesFan, who highlighted a potential bearish reversal.

Recent market patterns, including a small-range shooting star candlestick, suggest a looming pullback similar to historical corrections observed in 2023 and early 2024.

CyclesFan’s analysis points to possible price levels around $110 based on previous downturns, raising implications for NVDA’s role as a barometer in the AI and semiconductor sectors.

A significant correction in NVDA could reverberate across broader tech markets, signaling a possible market reassessment of valuations in these sectors amid ongoing concerns of a market downturn.