Technical Update - Will Nvidia resume down trend after Profit warning?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
NVidia The short-term rebound experienced the past couple of weeks seems to have come to a halt just a few dollars below the key resistance at 196.19. If NVidia had closed above that level the medium-term trend would also have turned bullish.
Opening 8% lower at $175.02 on profit warning announced Pre-Market this morning jeopardizes the uptrend scenario.
With the lower open NVidia opens below the short-term rising trend line but technically, the share is still in a short-term uptrend. A daily close below 164.78 will reverse that picture and Nvidia will resume the medium-term down trend it has been trading in for most of 2022.
However, if NVidia manages to close back above the trendline short-term rising trendline it would be a sign of strength and NVidia is likely to test resistance at 196.19.
However, at the time of writing RSI has broken below its rising trendline which is indication of a trend reversal. A close below will be strong indication of a bear trend scenario to play out. Warning signs of a weakening trend has been there however, traded volume has been declining over the past two weeks price uptrend.
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