Nvidia, the renowned semiconductor giant, made a strong start to the week by surpassing both Microsoft and Apple to become the world’s largest company by market capitalization. However, its fortunes quickly turned as the stock experienced a significant drop and closed at $130.78. The decline continued, and at present, Nvidia’s price stands at an even lower $128.81.
Although not catastrophic, this extended session has not been favorable for Nvidia. It is worth noting that if such a market move had occurred before the 10-for-1 stock split, the shares would have plummeted by over $100 in a single trading session.
The price drop not only caused Nvidia to lose its top spot to Microsoft but also signaled a bearish trend with the appearance of a bearish engulfing pattern on the chart. This pattern suggests that the previous uptrend may be coming to an end and is often seen as a strong signal for investors to consider selling or taking a short position.
Furthermore, the rapid movement of Nvidia’s shares has made it challenging to determine its support and resistance levels. However, there are indications that as long as it remains above $121, the price immediately following the stock split, the blue-chip chipmaker is unlikely to experience a significant market drop during the expected retracement.
Disclaimer: This article does not provide investment advice. Investing is speculative, and there is a risk of capital loss.
