Nvidia (NVDA) Share Price Growth Slows
Equity markets are on the rise:
→ The S&P 500 index (US SPX 500 mini on FXOpen) has reached a new all-time high;
→ The Nikkei 225 (Japan 225 on FXOpen) hit a fresh record high yesterday;
→ Gains are also seen across other assets — for example, Ethereum has climbed to its highest level since November 2021.
The CNN Fear & Greed Index indicates market “greed”, but it is worth noting that one of the market leaders, Nvidia (NVDA), is not matching the broader bullish momentum.
Technical Analysis of Nvidia (NVDA)
Although NVDA’s share price remains within a long-term ascending channel (shown in blue), holders have valid reasons for concern.
The NVDA chart shows that price growth is capped by the $183 resistance level, with a series of bearish signals emerging (as indicated by the arrows):
→ Following a bullish gap in late July, the price failed to sustain its highs and quickly retreated, erasing the upbeat sentiment;
→ A bearish engulfing pattern on 7 August suggests that the median line of the ascending channel is acting as resistance;
→ The RSI indicator peaked on 29 July, but subsequent price increases have not been accompanied by higher RSI highs — a sign of bearish divergence.
As a result, NVDA price is consolidating within a narrowing triangle:
→ On the one hand, higher lows indicate that buyers are still supporting the price;
→ On the other hand, the $183 level continues to cap the advance of this market leader despite the broader bullish environment.
Bulls need to show determination soon to break through the key $183 resistance; otherwise, the ascending channel in place since early July risks being breached. In that scenario, the August low near $172 could be retested.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Equity markets are on the rise:
→ The S&P 500 index (US SPX 500 mini on FXOpen) has reached a new all-time high;
→ The Nikkei 225 (Japan 225 on FXOpen) hit a fresh record high yesterday;
→ Gains are also seen across other assets — for example, Ethereum has climbed to its highest level since November 2021.
The CNN Fear & Greed Index indicates market “greed”, but it is worth noting that one of the market leaders, Nvidia (NVDA), is not matching the broader bullish momentum.
Technical Analysis of Nvidia (NVDA)
Although NVDA’s share price remains within a long-term ascending channel (shown in blue), holders have valid reasons for concern.
The NVDA chart shows that price growth is capped by the $183 resistance level, with a series of bearish signals emerging (as indicated by the arrows):
→ Following a bullish gap in late July, the price failed to sustain its highs and quickly retreated, erasing the upbeat sentiment;
→ A bearish engulfing pattern on 7 August suggests that the median line of the ascending channel is acting as resistance;
→ The RSI indicator peaked on 29 July, but subsequent price increases have not been accompanied by higher RSI highs — a sign of bearish divergence.
As a result, NVDA price is consolidating within a narrowing triangle:
→ On the one hand, higher lows indicate that buyers are still supporting the price;
→ On the other hand, the $183 level continues to cap the advance of this market leader despite the broader bullish environment.
Bulls need to show determination soon to break through the key $183 resistance; otherwise, the ascending channel in place since early July risks being breached. In that scenario, the August low near $172 could be retested.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.