Last week, Nvidia’s share price hit a high of $140.76 per share, the highest shares for the company have ever been at. At this height, the company’s total value was around $3.46 trillion. While that’s a big milestone, the success didn’t last long. As of Tuesday before trading the share price had retreated to $118.11.
The drop in the stock price is by far the sharpest drop the stock has seen ever since it started its bull run at the start of last year. While there are very sensational headlines about the wipeout of billions of dollars of value, we might not have seen the end of Nvidia’s run up to new highs. The price is nowhere the near the 50-day moving average yet and we’ve seen it bounce off that to new highs since the start of 2023; what happens next is still unknown.
With that said, in the short term we could see more downward pressure on the stock's price, at least according to the relative strength index. The 14-day RSI is currently at 52.25 while the RSI-based moving average is at 74.00; to traders this can indicate that Nvidia’s stock is in a bit of a bearish phase.
As mentioned earlier, Nvidia’s stock has previous bounced off of the 50-day moving average before heading back up, right now this moving average is $101.53. Another moving average that’s important to watch is the 150-day, this currently sits at $78.26 and if Nvidia were to come down to this level it could be a significant blow to Nvidia’s bull run and could put an end to it but it’s not there yet so the bull run could continue.
In pre-market trading on Tuesday morning, the stock price had climbed from the close price of $118.11 to $121.74 – this is a sign that some traders and investors think the price may rebound and think they’re getting a small bargain.
Let us know in the comment where you think the Nvidia stock price is going to go.
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