Nvidia (NVDA) has been navigating significant hurdles in September amidst market volatility and economic uncertainty. The semiconductor giant witnessed a steep drop of over 9% in one of its worst weeks recently, struggling to maintain its valuation above the crucial $100 support level. By the end of September 6 trading session, NVDA closed at $102, marking a more than 4% decline for the day.
Since June, Nvidia’s stock has experienced a notable downturn after reaching a peak market capitalization of $3.3 trillion, briefly claiming the title of the world’s most valuable company. Market experts have pointed to technical indicators indicating a possible downside for NVDA in the coming weeks. According to analyses, Nvidia closed below the 20-week moving average for the second time recently, suggesting a downward trend.
The stock is currently in a volatile state, with expectations of potential retests of lower price levels as indicated by chart movements. Observations on the lower Bollinger Band (BB) hint at a retesting scenario similar to that of October 2023. The recent trading patterns, including heightened 30-day volatility, have contributed to a significant decline in Nvidia’s market cap, attracting concerns from investors and market analysts alike.
Moreover, external factors such as economic uncertainties, including a mixed U.S. jobs report and antitrust investigations, have further impacted NVDA’s performance. Despite Wall Street analysts projecting a potential upside of 47% over the next 12 months for Nvidia, the stock’s short-term recovery heavily relies on broader market sentiments to avoid further declines below the critical $100 mark.
It’s essential to consider that investing in stocks carries inherent risks, and individuals should exercise caution and conduct thorough research before making any investment decisions.