Nvidia undefined has been one of the best stocks to trade in 2024, it's been one of the best investments as well for the past few years.
But we know that stocks do not grow to the sky forever and often become too overvalued, whereas sharp corrections take place. These often feel as if the world is ending, but when we step back and even look at a long-term chart that is simply not the case, especially with this stalwart stock.
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However, we are at a point where buyers are just not showing up and if they are getting engaged, they are being met by rampant sellers. That simply was not the case earlier this year nor late in 2023, but times have changed.
We see in the chart, above, some hefty red volume bars (top pane), and more recently lower turnover on the up sessions. That is not bullish.
Further, the candles in the GoNoGo system have now turned pink/purple, alternating between the two. That is a bearish sign, but certainly can be rehabilitated to bullish with a few strong sessions.
With a series of lower highs and lower lows this stock is showing weakness. But, with earnings coming up soon that could flip very quickly. The buyers love it when NVDA reports.
Lastly, the indicators are telling us there is a chance for this stock to roll over. It's time to tread cautiously here, but if the stock corrects a bit more to the $795 level, then we might see another buying opportunity opening up.
At the time of publication, TheStreet Pro Portfolio was long NVDA.