Nvidia buying activity signals major correction ahead for NVDA stock
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The bullish momentum surrounding semiconductor giant Nvidia (NASDAQ: NVDA) might be coming to an end, according to technical indicators, particularly in relation to buying activity. In this regard, trading expert Peter DiCarlo’s analysis in an X post on July 15 suggested that Nvidia has seen a third consecutive week of reduced buying activity. This emerged despite the stock maintaining positive gains. Although the stock’s closing price was higher for the week, the BX Trender—a key technical indicator tracking buying and selling pressures—indicates lower highs. DiCarlo noted a potential target for Nvidia around $110, reflecting a possible correction of approximately 14% from the current price. The analysis pointed out that while there was a significant upward trend from March to early July, recent weeks have shown diminishing buying momentum. “NVDA third week in a row of slowed buying. Even with the price closing higher this week, we’re still showing lower highs on the BX trender. I AM NOT short, but I still think we see a pull back to $110,” the expert said. Nvidia stock analysis. Source: TradingView It’s worth noting that DiCarlo’s analysis, supported by charts, reinforces Nvidia’s long-term bullish momentum, suggesting that a short-term retreat to the buy zone would align with its broader upward trajectory. Escalating signs of NVDA crash In addition to DiCarlo’s analysis, other signals have pointed to an imminent correction in the Nvidia stock after enjoying a lucrative year of significant gains. Per a Finbold report, Nvidia has recently formed a small-range shooting star pattern on its weekly candle, often interpreted as bearish for a reversal. This specific candle pattern was previously observed in October 2023, a period when the stock was not at its all-time high. Historically, following this pattern in 2023, Nvidia experienced significant drawdowns. Concerns about a possible crash have been heightened…
Filed under: News - @ July 15, 2024 12:14 pm