Nvidia (NVDA) Technical Outlook
- Nvidia back below $3 trillion market capitalization.
- A technical chart gap may be a sign of further losses to come.
Nvidia has shed nearly 16% of its market value in the last three trading sessions as sellers take control of the world’s largest chipmaker. Nvidia became the world’s largest company last week, with a valuation in excess of $3.34 trillion, surpassing both Microsoft and Apple, but now sits in third place with a market cap of around $2.85 trillion. The recent sell-off coincides with news that Nvidia CEO Jensen Hang has sold around $95 million of stock in the past few days. To keep the recent consolidation in perspective, Nvidia remains on of the S&P 500’s top performers, with year-to-date gains of around 140%.
There is a ‘gap’ on the daily Nvidia chart, formed when the last company earnings were released, and this may come into play if the recent bearishness continues. Nvidia is currently testing the 23.6% Fibonacci retracement of this year’s rally and if this fails then a move lower to the 38.2% retracement level of around $105 may be seen. Below here is a gap in the chart between the May 22nd high at $96 and the May 23rd low at $101.50, made on the last earnings release. The 20-day simple moving average, a recently supportive dynamic indicator, is also being tested. This runaway gap may attract traders, especially with the increased selling volume seen in the last three days.
Trading the Gap – What are Gaps & How to Trade Them?
Nvidia Daily Price Chart
Chart via TradingView
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