The Nvidia Corporation stock (NASDAQ: NVDA) traded in a consolidative manner on Monday, after hitting support at 492.00 on Friday. Overall, since October 26th, the stock has been trading below the prior upside support line drawn from the low of April 3rd, and in our view, this keeps the short-term outlook somewhat negative.
A clear and decisive break below Friday’s low of 492.00 may pave the way towards the lows of September 4th and 8th, at around 468.00, where another dip may carry larger bearish implications, perhaps paving the way towards the low of August 11th, at 432.00. If that barrier is not able to halt the slide either, the next zone to consider as a support may be at 392.00, a territory that stopped the price from moving lower on July 14th and 24th.
Looking at our short-term oscillators, we see that the RSI rebounded from near its 30 line, and now points north, while the MACD, although below both its zero and trigger lines, shows signs of bottoming. What’s more, there is positive divergence between the RSI and the price action. All this suggests slowing downside speed and make us cautious that a small rebound may be in the works before the next negative leg.
That said, in order to start examining the bullish case again, we would like to see a strong break above 548.00, the high of October 26th. The price would already be above the aforementioned upside line and investors may get encouraged to target the peak of October 13th, at 574, or even the stock’s all-time high of 589, hit on September 2nd. If that’s still not enough, then we may see Nvidia entering uncharted territory, with market participants exploring new records.
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