Nvidia is currently experiencing a significant selloff, with its stock falling 13% following a brief period of surpassing Microsoft as the world’s most valuable company. This drop has pushed Nvidia into a technical correction for the first time since April, causing concern among traders. Technical analysts are now looking at support levels, with short-term support seen around $115 and the next significant level at $100.
The $115 mark for Nvidia stock is close to a key Fibonacci retracement level, a tool used by technical analysts to identify potential support or resistance lines. While technical analysis is not always precise, it can offer investors a roadmap to navigate market fluctuations. Despite the recent selloff, Nvidia has seen a strong performance this year, up 139% overall.
Analysts like Ari Wald believe that the long-term trend for Nvidia remains strong, with the stock trading well above its 50-day and 100-day moving averages. While there have been concerns about the recent drop, particularly if the stock falls below $100, overall the long-term outlook for Nvidia appears positive. Analysts are closely watching key levels of support, especially in a volatile market environment characterized by uncertainty around the upcoming election and Federal Reserve policies.
Overall, traders are closely monitoring Nvidia’s stock performance and looking to technical analysis for guidance on potential support levels. While the recent selloff has raised concerns, many analysts believe that the long-term upward trend for Nvidia remains intact. However, the stock’s ability to hold key support levels, such as $100, will be critical in determining its future trajectory.
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