Is Nvidia's Stock Overbought Right Now?

Shares of NVIDIA Corporation NVDA may be about to head south.

The bottom part of the following chart is the Relative Strength Index (RSI) Momentum Indicator. When the blue line is above the red horizontal line, it indicates overbought conditions. This means the shares have reached an extreme above what would be their typical trading range.

Since August, the shares have only been as overbought as they are now three times and each time a sell-off followed. It could happen again.

Nvidia's stock trades around $705.30 at publication time.

See Also: Nvidia's Stock Breaks Through Resistance And Heads Higher