Technical Analyst, Saxo Bank
AI related semiconductors hit by heavy selling after breaking key support levels.
Nvidia below 822 key support at 822 could see further down side to 700, possibly lower.
ARM Holdings no strong support until around USD 77
Super Micro Computer eyeing 600, but no strong support until around 492
Bullish correction should be expected but be careful, you could be trying to catch a falling knife
Nvidia. After testing key supports — the gap area — a few times, it finally gave in on Friday. Nvidia was hit by a massive sell-off on Friday, down 10%.
This comes after Nvidia formed two Bearish Engulfing candlesticks, which are strong indications of a top and reversal, and created a double top pattern in the process. The double top was confirmed
On Friday, Nvidia sold off to the 1.618 projection of the double top pattern but could push lower in the coming days.
A bearish move to support at around 742 seems likely.
A daily close below 742 could ignite another wave of selling down below 700, with no strong support until around 661.60. If Nvidia closes below the Cloud area (the shaded area), it will add to the bearish picture.
The RSI closed on Friday below the 40 threshold, further confirming the bearish trend indicating lower levels for Nvidia.
To negate this bearish picture, a daily close above 841 is required.
Disclaimer: Author of this analysis is short position in ARM
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.