. Nvidia's Stock Decline: What Investors Should Know

Nvidia’s Stock Decline: What Investors Should Know

14 Mar 2024

Nvidia shares drop 13.6% off March’s high of $974.

FUNDAMENTAL OVERVIEW:

Nvidia, the chip-making behemoth, has witnessed a nearly 14% decrease this month from its March pinnacle of $974. This decline aligns with the broader market’s retreat last week from record highs. Despite this, Nvidia remains the third most valuable company on Wall Street, surpassing Alphabet, Amazon, and Saudi Aramco, and continues to serve as a leading indicator for artificial intelligence (AI) chip production.

Nvidia anticipates a remarkable three-fold increase in first-quarter revenue due to robust demand for AI chips, surpassing already lofty expectations and sparking a global tech rally in late February. As of Wednesday, March 13, Nvidia shares were trading 3.09% lower at $890.71 on the NYSE. Market analysts are divided on whether this presents a buying opportunity or signals the end of the current rally.

Nvidia’s stock struggled to maintain higher levels this month due to profit-taking, exacerbated by selling pressure in the S&P 500 and Nasdaq indices.

Nvidia’s shares have surged by over $1 trillion in value this year, an astonishing feat for a stock of its magnitude. This remarkable performance is fuelled, in part, by its dominant position in what could be considered the largest investment surge since the inception of the Internet.

NVIDIA TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Nvidia is trading within an up channel.

Nvidia is positioned above the 20&50 Moving Average (SMA).

The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Neutral trend.

Immediate Resistance level: 929.92

Immediate support level: 874.05

HOW TO TRADE NVIDIA

After a sharp rise, Nvidia’s stock price paused briefly before declining. However, it appears to have stabilized without further downward movement. Given Nvidia’s significant upward momentum thus far, it’s reasonable to anticipate a correction, presenting a potential buying opportunity on a dip.

TRADE SUGGESTION- STOP BUY– 811.18, TAKE PROFIT AT- 933.43, SL AT- 736.37.