Macro: It’s all about elections and keeping status quo
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.
Technical Analyst, Saxo Bank
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.