Review: The sell-off in the spring of Nvidia shares only had a very short half-life: After a slump to around USD 180.00, the bulls launched a massive counterattack and already overcame the then all-time high of USD 316.32 in May. A huge rally followed, leading the value to the top of the mid-term target area at USD 600.00. After the formation of a new all-time high at USD 589.07, the share price fell sharply in September, but this was stopped by a bottom formation in the area of USD 470.00. The value then picked up again towards the record high, but was not yet able to overcome it. Starting from the last high at USD 573.94, stocks started another corrective move.
Outlook: The rise since mid-September has been interrupted and the central upward trend line is approaching on the downside. All in all, the signs for Nvidia shares are still pointing to correction.
The long scenarios: If the value now falls below the trend line at the level of the support at USD 522.49, further corrective sales of up to USD 500.00 would occur. The next upward impulse could start there. Should the level be undercut, however, a test of the supports at USD 480.56 and USD 468.17 would be the result before the upward trend is likely to continue. A rise above USD 565.00 could give the starting signal for another attack on the target area around USD 600.00. Above this, a medium-term rally to USD 645.00 is conceivable.
The short scenarios: If the USD 468.17 level is also broken, a short signal would be activated and a setback to USD 431.69 would be expected as a result. Prices below the mark, on the other hand, would cause another sell-off to USD 391.43.
Disclaimer: The text is a column of the UBS. 4investors is not responsible for the content of the column and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!
At a glance – chart and news: Nvidia