Trading Journal: Look For Near-Term Weakness In Nvidia
Shares of NVIDIA Corporation (NASDAQ:NVDA) have been steadily rising in 2018, culminating in an all-time high of $292.76 on Tuesday.
But the stock has now fallen off 5 percent from that high, and the volatility experienced in the overall market on Thursday has investors on their toes. That said, let's take a look at where the stock is headed in the coming days, and whether NVDA's strong performance will continue
VantagePoint's two main indicators, a predicted moving average and neural index, are both forecasting near-term weakness in NVDA.
The predicted moving average, the blue line on the chart, signals an uptrend when it crosses above the black line, which is a simple 10-day average. You can see how an uptrend was signaled on Sept. 26, prior to the stock's breakout to all-time highs.
Notice what happened on Thursday—the moving averages crossed back over each other. We can take that as a signal that the stock may fall in the coming days.
The red-green bar at the bottom of the chart—the neural index—has shifted to red, which serves as a confirmation of this trend.
Shares of NVDA were trading down 1.5 percent on Friday morning.
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