NVDA Stock Price Recovers After 1.5-Month Low
Yesterday, NVDAs stock price fell to 116.61 its lowest level since June 5th.
The bearish sentiment was triggered by Trumps cautious remarks regarding the necessity to defend Taiwan from the threat of military action by China. The leading pre-election candidate suggested in a Bloomberg interview that the island should pay for US defensive support, leading to a drop in semiconductor manufacturers' stock prices: TSMC fell by 8%, and Nvidia shares dropped by 6.6% during yesterday's session, as its primary AI chip producer is Taiwan Semiconductor Manufacturing.
However, today in pre-market trading, NVDA's price is recovering, rising above $120 per share. How might the situation develop further?
Let us recall that on 10th July, we wrote about strong seller pressure above the $130 per share level. Since then, the price has declined by approximately 9%.
Technical analysis of NVDAs chart today shows that:
Bears have twice (indicated by arrows) aggressively pushed the price down when it was above the mentioned level;
The price found support from the gap zone around the $115 level, where bulls broke through the May highs on June 4-5;
The price is still moving within the upward channel (shown in blue), but has dropped into the lower half;
Additionally, the price has formed a wide bearish gap with the upper boundary at $125.
Investor concerns should not only focus on Trumps remarks but also on the fact that NVDA's price is underperforming the stock index, despite being a market leader in the first half of the year. If bears continue to hold the initiative, we may see signs of their aggression not from the $130 level, but from the $125 level if this happens, the lower boundary of the current blue channel will be at risk of a breakout.
Read more: https://fxopen.com/blog/en/oa-nvda-stock-price-recovers-after-1-5-month-low/
Text source: Forex Trading Blog
