[16 July 2024]
Today, Tuesday 16 July 2024, StockCharts365.com has taken a closer look at one of the world's largest companies, NVIDIA (ticker on Nasdaq: NVDA) and where the stock has increased tenfold in the past two years alone.
In recent days, StockCharts365.com has come up with several analyzes of other among the world's largest IT companies such as Meta Platforms (META) and Alphabet (GOOGL) and others, and of the Nasdaq Composite Index, one of the world's most important stock market indices.
StockCharts365.com now sees many signs that a major correction may be imminent for many of these among the world's largest companies, and for one of the world's most important stock market indices, the Nasdaq Composite Index (^IXIC).
Read more about this below in the case here today.
First here a little about the company NVIDIA Corporation (ticker on Nasdaq: NVDA)
NVIDIA Corporation is a full-stack computing infrastructure company. The Company accelerates computing to help solve the computational problems.
The Company’s segments include Compute & Networking and Graphics. Compute & Networking segment includes its data center accelerated computing platform;
networking; automotive artificial intelligence (AI), cockpit, autonomous driving development agreements and autonomous vehicle solutions; electric vehicle computing platforms; NVIDIA AI Enterprise and other software.
The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU (vGPU), software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and omniverse enterprise software for building and operating metaverse and three-dimensional Internet applications.
For more information about the company, visit their website here:
Technical Analysis of NVIDIA Corporation (ticker on Nasdaq: NVDA)
Technical Analysis of NVIDIA Corporation (ticker on Nasdaq: NVDA):
NVIDIA Corp. (NVDA) is in a long-term rising trend (cf. weekly chart) and the share is now meeting technical resistance against the upper trend line in this long-term rising trend. At the same time, various momentum indicators (in the weekly chart) and such as Stochastics, RSI and MACD now signal that the share is likely to face a downward correction in the short and medium term In the event of a downward correction, there is now little technical support for the share, and a correction can thus be significant. According to the long-term rising trend, the stock is now right up against the resistance level at the upper trend line of this long-term rising trend. Yes, according to this long-term upward trend, the overall technical picture for the stock now indicates that it may well get a correction down towards the lower trend line in this upward trend, and down towards USD 35.00 - 50.00 during the next 3- 9 months. The share is currently trading at around USD 127.00, and it may thus be heading for a sharp downward correction for the NVIDIA share over the next 3-9 months. This is what the technical picture for the share now signals, and it is, as I said here, a picture that repeats itself among several of the largest IT companies now and for the stock market index Nasdaq Composite, that a major downward correction may be imminent. It may sound extreme that some of the world's largest companies may see their shares correct sharply downwards and perhaps fall 30-70% within 3-9 months, but also remember that several of these shares have between 5-10 doubled itself during just the past two years. It is typical for the stock market to 'exaggerate' both on the upside and on the downside, and hence very strong fluctuations on the stock exchange and individual shares. As StockCharts365.com assesses it, and after taking a closer look at many of the world's largest companies and one of the world's most important stock market indices, the technology-heavy Nasdaq Composite Index in the USA. Yes, there is good reasons to be careful in the stock market going forward for a while, and there are still no trees or shares that have grown all the way up into the sky. Although some stocks are starting to come pretty close now to making it. StockCharts365.com therefore urges caution for a while here in the stock market, and envisages a major downward correction during autumn 2024.
Also read if you want the following other analyzes here last week about other stocks and the Nasdaq Composite index:
NB! Remember to have read and understood the disclaimer.
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