NVDA Stock Analysis: Reversal Pattern Forming on the Chart

FXOpen

NVDA stock has been a stock market leader throughout 2023 amid the AI boom. NVDA's share price rose by more than 200%, allowing NVidia's capitalization to exceed USD 1 trillion.

However, a pattern is forming on the chart, warning that NVDA's share price may decline. This is a diamond pattern A-B-C-D (determining the position of point D still takes time), which is formed from intersecting parallel lines of support and resistance. They are shown on the chart using ascending and descending channels.

Even though this instance of the pattern is far from the standard, it deserves attention.

Arguments confirming that the pattern can work:
→ in September, NVDA stock performed weaker than the S&P 500 index;
→ at the top of the diamond, there were high trading volumes, according to the NASDAQ exchange. The current price is below the levels at which high-volume transactions were recorded at the end of August. This can be interpreted as the fact that large market participants are taking profits (and/or even taking a short position);
→ the media is disseminating information that NVDA shares were sold by Berkshire (managed by Buffett) and the company's president Jen Huang herself — according to Yahoo Finance, on September 11, she sold about 30k shares.

Could the AI boom be winding down? According to investor Rob Arnott, Nvidia stock is a bubble. And if it bursts, it could trigger a collapse of the entire stock market.

Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Shares

AMZN Stock Analysis: 4 Reasons to Doubt the Bullish Outlook NVDA Stock Analysis: Will AI Put an End To Decreasing Share Price? Market Analysis: TSLA Share Price Soars 10% Apple in Trouble: Shares Fall More Than 3.5% Pfizer: Will It Be Ramped Up, or Has That Ship Sailed?

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: Inflation, EUR/USD, S&P 500, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Inflation Still Dogs the

Forex Analysis

Market Analysis: Dollar Falls from 10-month High

EUR/USDThe euro rose on Thursday as the dollar retreated since investors remained cautious ahead of key inflation figures due on Friday. Data on Thursday showed the US economy maintained fairly strong growth in Q2, with an unrevised annual rate

Indices

US 30 Analysis: Dow Jones Finds Support

September is likely to be the second month in a row that the Dow Jones (US 30) stock market index declined. The last time this happened was... also in September, a year ago. Important economic data was published yesterday: → According

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.