Technical Update - Will Nvidia resume down trend after Profit warning?
Kim Cramer Larsson
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.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.