Fund manager warns Nvidia’s ‘day in the sun’ over with $50 price target
The post Fund manager warns Nvidia’s ‘day in the sun’ over with $50 price target appeared on BitcoinEthereumNews.com.
Nvidia (NASDAQ: NVDA) has enjoyed a sustained period of growth, currently trading near the upper limit of its 52-week range. However, some experts believe the company’s exceptional gains may be nearing an inflection point, with a prominent hedge fund manager sounding the alarm over what could be a sharp reversal. Over the past month, Nvidia’s share price has fluctuated between $126.86 and $146.54—a relatively broad range indicating market indecision. The stock now sits near the middle of this range, with visible resistance levels just above. Analysts point to a key support zone between $131.60 and $137.05, bolstered by several trend lines and moving averages across different timeframes. Conversely, the resistance zone between $139.78 and $141.19 could cap any upward momentum. If the stock breaks through this level, the next significant resistance emerges between $147.64 and $148.89—a pivotal point for determining Nvidia’s near-term prospects. Nvidia 1-day stock price chart. Source: Finbold Nvidia technical analysis Recent technical indicators paint a cautionary picture. Historical precedents suggest that when Nvidia stock dipped below its 50-day moving average in October 2018, it wasn’t long before it crossed below the 200-day moving average as well. This double breach coincided with a sharp downturn as the stock lost critical support levels. During that period, the Average Directional Index (ADX), which measures trend strength, dropped below 20, signaling a weakening bullish trend. Simultaneously, the Chaikin Money Flow (CMF) indicator, which tracks buying versus selling pressure, dipped below zero—an ominous sign of fading investor confidence. A glance at Nvidia’s current chart reveals unsettling parallels. Although the CMF indicator has not yet fallen below zero, it has hovered dangerously close to that threshold for the past two months. This stagnation suggests that while bulls are still in the fight, their grip on the market is tenuous. If the CMF indicator…
Filed under: News - @ January 3, 2025 9:22 am