The post Bearish chart alert: Will Nvidia crash? appeared on BitcoinEthereumNews.com.

While Nvidia (NASDAQ: NVDA) is one of the best-performing stocks of 2024 at the time of publication, an increasing number of analysts and investors are worried that the stock’s two-year rally may soon come to an end. On September 4, the company saw a record $279 billion loss in market cap. Valuation concerns have followed the stock’s rise throughout the year — now, after it has reached a new all-time high (ATH) of $140, many suspect that a correction is imminent. One researcher in particular has highlighted a bearish signal on Nvidia’s stock chart. Technical analyst points out bearish NVDA stock chart pattern Technical analyst Alan Santana observed that Nvidia stock has formed a double-top pattern on a year-to-date (YTD) chart in a TradingView post published on Monday, October 21. The double top is a bearish reversal pattern that is formed when two highs happen in close proximity to one another, with a marked decline in between. In this case, Santana pointed to NVDA stock’s June 20 peak of $139.80, together with the recent October 17 peak of $140. In the period between these highs, Nvidia shares had dropped as low as $92.23. Chart illustrating the double top pattern. Source: TradingView Santana also outlined several factors to bolster his bearish case — both of the highs closed red, and the latest high was preceded by a bearish signal — two sessions prior, a bearish engulfing candle was printed on the chart. To boot, trading volume has consistently been decreasing since the first high — this most recent surge is followed by a pretty clear case of bearish volume divergence. Finally, the trading expert emphasized that the stock is trading at the strongest possible level of resistance — an all-time high, and one that had previously been tested unsuccessfully. The analyst…

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Filed under: News - @ October 21, 2024 1:20 pm