Nvidia Corp. shares were trading lower Monday as many companies in the broader tech sector move lower.
A rise in Treasury yields has put pressure on these stocks.
Nvidia Daily Chart Analysis
The stock dipped near the 50-day moving average and formed what technical traders call a hammer candle. This candle shows that although the stock dropped, it looks to have bounced back a little.The $210 level is an area that once held as resistance, but if the stock falls all the way back down to this area, it may hold as an area of support. The hammer candle the stock is forming is showing strength.
The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
Each of these moving averages may hold as a possible area of support in the future.
The Relative Strength Index (RSI) has been falling in the last month and now sits at 49 on the indicator. This shows sellers were able to take control of the stock, as there is now more selling pressure than buying pressure in the stock.
What’s Next For NVIDIA?
Bullish traders want to see the stock consolidate for a time and then go on to make new highs. In mid-November the stock saw a high of $346, which may act as an area of resistance. If able to cross above this high, the stock could push higher as there’s no more resistance stopping it.Bearish traders want to see the stock start to trend lower and fall below the moving averages. This could cause the stock to see a period of bearish sentiment. Bears are also looking for a drop below the $210 level as this was where the last strong area of resistance and support was.
