Nvidia (NVDA) Has Broken Key Support, Here Is The Target
Published At: Dec 28, 2024 by
Gareth Soloway
Nvidia's recent stock performance is flashing warning signs for the tech sector and the broader market. After a remarkable surge that began in August (follwing the last major market correction), Nvidia (NVDA) broke its uptrend on December 13th, signaling a potential shift in momentum.
Key Takeaways:
- Uptrend Breakdown: Nvidia's break below its established uptrend line is a significant technical development. A brief retracement back to the trend line, now acting as resistance, was met with a sharp rejection, reinforcing the bearish signal.
- Market Influence: With a massive $3.35 trillion market cap, Nvidia's performance often foreshadows trends in the technology sector and the overall stock market. Its decline could have widespread implications.
- Potential for Deep Correction: The breakdown suggests a high probability of further decline. A key support level lies at $90, the August 2024 low, representing a potential drop of over 30% from current levels. It's even possible that Nvidia has already marked a multi-year high.
Looking Ahead:
Investors should closely monitor Nvidia's price action. Continued weakness could trigger a broader market sell-off, particularly in technology stocks. While predicting the future is impossible, the current technical picture suggests a cautious approach is warranted.
