Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

As Nvidia Stock Slides, Here's How To Play The Counter-Trend

Published 19/05/2022, 14:26
Updated 19/05/2022, 15:10
© Reuters.  As Nvidia Stock Slides, Here's How To Play The Counter-Trend

© Reuters. As Nvidia Stock Slides, Here's How To Play The Counter-Trend

NVIDIA Corporation (NASDAQ: NASDAQ:NVDA) plunged over 6% during Wednesday’s trading session in sympathy with the S&P 500, which shed 4%.

The technology sector has taken a beating over recent weeks as traders and investors have weighed how the Federal Reserve’s decision to raise interest rates and begin quantitative tightening, scheduled to begin on June 1, will impact the market.

On May 25, Nvidia is expected to print its first-quarter earnings. When the company reported fourth-quarter and fiscal year 2021 financial results on Feb. 16, it guided first-quarter revenue of $8.1 billion, which came in above the consensus estimate of $7.29 billion.

On Thursday analysts began to weigh in on the chipmaker. Oppenheimer maintained an Outperform rating on the stock but lowers its price target to $300. The new price target suggests about 77% upside potential for Nvidia shares.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Nvidia Chart: Nivida has been trading in a steep and consistent downtrend since March 29, losing 41% of its value since reaching the $289.46 mark on that date. Nvidia’s most recent lower high was printed on Tuesday at $183.71 and the most recent confirmed lower low was printed at the $155.67 level on May 12.

  • Bullish traders wishing to play Nivida counter-trend will need to be agile and patient, watching for a reversal candlestick, such as a doji or hammer candlestick, to develop in order to catch the brief rallies that take place to form subsequent lower highs. Bullish traders can also be prepared if Nvidia prints a double bottom level at the most recent lower low, which could signal a reversal.
  • Bears traders who are already in a position will want to see sustained bearish volume continue to push Nvidia lower. The candlestick Nvidia printed on Wednesday, which closed at the low-of-day, suggests lower prices are likely in the cards for Thursday.
  • Nvidia has two gaps above on its chart, with the first between $227.77 and $230.62 and higher gap between the $253 and $258.20 range. Gaps on charts fill about 90% of the time, which makes it likely Nvidia will trade up to fill the empty range in the future but it could be a long period of time before that happens.
  • Nvidia has resistance above at $180.73 and $187.80 and support below at $161.37 and $145.75.

See Also: Nvidia Q4 Earnings Beat Estimates On Strong Data Center, Gaming Demand

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.