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NVIDIA's 10-Day Win Streak Now In Danger

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NVIDIA Corporation (NASDAQ: NVDA) shares are trading lower by $6.00 at $112.43 in Wednesday's session. The issue, which is one of the top performers in 2016, is in grave danger of ending its 10-day winning streak.

That streak has taken the issue from its December 12 close ($89.59) to $119.93 earlier in today's session, a 25 percent rally at today's peak. For the year, the issue is up 242 percent from 2015's year-end close of $32.96.

The issue, which fund managers have been loading up on over the last few sessions to dress up their year-end holdings, are now trapped.

Before the open, bullish comments by Argus Research had the issue soaring in pre-market trading. In fact, it traded $120.36 on its opening trade of Wednesday's pre-market session.

The euphoria came to a screeching halt when former NVIDIA bull, Andrew Left of Citron Research, declared the rally was way overdone. Interestingly, the issue had already backed off its regular session high of $119.93 when aggressive short sellers seized on the first sign of weakness since December 9.

Left stated through his Twitter handle that "now the market is disregarding headwinds. In 2017, we will see Nvidia head back to $90.00."

At the current rate of its decline, it could be back at the $100 area soon. It has continued to make new lows for the session with the current one standing at $109.27. If the decline continues through the current low, there may be additional support at the pair of lows from December 22 ($106.53) and December 23 ($106.27). Beyond that is the pair of lows at the $104.00 area from December 20 ($104.12) and December 21 ($103.71).

Posted-In: Andrew Left Citron ResearchShort Sellers Technicals Intraday Update Movers Trading Ideas

 

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