Nvidia Shares Dip Lower: What's Going On And What's Next?

NVIDIA Corp. NVDA shares are trading lower Friday as many companies in the broader tech sector are falling lower. The stock continues to float sideways after breaking out of an ascending triangle pattern in mid-October 2021.

Nvidia closed down 4.4% at $306.93.

See Also: Why Nvidia Shares Are Falling

NVIDIA Daily Chart Analysis

• The stock has been moving sideways after breaking out of what technical traders call an ascending triangle pattern.
• After breaking above the $210 price level, the stock went on to shoot higher and is now seeing a period of consolidation around the $300 area. If the stock continues sideways movement, traders can expect the stock to eventually make a strong move when above average volume comes into the stock.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been falling the past few weeks and now sits at 53 on the indicator. This shows that there is only slightly more buying pressure than selling pressure in the market.

What’s Next For NVIDIA?

Bullish traders want to see the stock consolidate for a time and then go on to make new highs. In mid-November the stock saw a high of $346, which may act as an area of resistance. If able to cross above this high, the stock could push higher as there’s no more resistance stopping it.

Bearish traders want to see the stock start to trend lower and fall below the moving averages. This could cause the stock to see a period of bearish sentiment. Bears are also looking for a drop below the $210 level as this was where the last strong area of resistance and support was.