Technical Update - Nvidia, ARM and Super Micro below key supports. Selling pressure likely to continue Technical Update - Nvidia, ARM and Super Micro below key supports. Selling pressure likely to continue Technical Update - Nvidia, ARM and Super Micro below key supports. Selling pressure likely to continue

Technical Update - Nvidia, ARM and Super Micro below key supports. Selling pressure likely to continue

Equities 3 minutes to read
Kim Cramer Larsson

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.

Source all charts and data: Saxo Group
ARM Holdings formed a Descending triangle like patter. Such a pattern can both be a continuation and a reversal pattern.
In this case it has become a reversal pattern after closing below 120.

The selling has continued to push ARM below the upper boundary of the big gap area from February. There is now no strong support until at around USD 77.

ARM is trading below all daily moving average and RSI is showing negative sentiment with no divergence indicating lower levels for ARM are likely in coming days/weeks

Short-term rebounds could be seen but to negate this bearish picture a daily close above 115.20 is minimum requirement
Super Micro Computer (SMCI) was rejected at its upper falling trendline and has now been hit with heavy selling, passing through the minor support at around 855 to just above support at around 698.

SMCI closed Friday below the Cloud area (shaded area) which is a strong indicating of SMCI in bearish trend, and the RSI below the 40 threshold, confirming the downtrend that is likely to see lower levels.

A daily close below 698 could push SMCI down to around 600, where the 100 daily moving average will offer some support.

However, a bearish move down to the 1.382 projection of the top and reversal-like pattern (it resembles a Shoulder-Head-Shoulder pattern) at around 492.59, close to where the 200 daily moving average is currently moving, could be seen over the next couple of weeks.

However, some bullish corrections should be expected, but to negate the bearish picture, a daily close above 1,000 is the minimum requirement.

Disclaimer: Author of this analysis is short position in ARM


The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.