Technical Analysis – Nvidia stock gets rejected at 50-day SMA
Nvidia pulls back from its 2023 high before attempting a rebound
Latest recovery held down by 50-day SMA and Ichimoku cloud
Momentum indicators are tilted slightly to the bearish side
Nvidia has been the best performing stock of the S&P 500 in 2023, gaining around 250% and marching to consecutive record highs before experiencing a downside correction. Even though the price staged a minor recovery, the 50-day simple moving average (SMA) capped its upside.
Should the 50-day SMA hold its ground and deflect the latest advance, the September low of 408.50 could act as the first line of defence. A break beneath that zone could pave the way for the August bottom of 403.00. Diving lower, the stock could challenge 365.80, which is the upper end of the positive price gap registered on May 25.
Alternatively, if buying interest intensifies, the bulls might initially claim the congested region of 450.00, which includes the 50-day SMA and the upper end of the Ichimoku cloud. Even higher, the July peak of 478.50 could provide further upside protection. Failing to halt there, the stock may revisit its all-time high of 497.80.
In brief, Nvidia’s share price has erased a significant part of its recent correction, but the 50-day SMA curbed its upside. Hence, the stock’s short-term future lies on whether this barricade will be violated or not.
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