In September, Nvidia (NASDAQ: NVDA) encountered significant hurdles as the stock market faced uncertainty amidst economic challenges. The semiconductor giant experienced a sharp drop of over 9% in one of its worst weeks, struggling to hold above the $100 support level. By the end of trading on September 6, NVDA stood at $102, marking a more than 4% decline for the day.
Since June, Nvidia’s stock has been on a downward trend after reaching a peak market cap of $3.3 trillion and a brief stint as the world’s most valuable company. An analyst noted that technical indicators point towards potential further downside for NVDA in the near future. The expert’s analysis revealed that Nvidia had closed below the 20-week moving average for the second time recently, signaling a concerning trend.
Recent price movements also indicated the possibility of Nvidia revisiting the lower Bollinger Band, which was last observed in October 2023. Bollinger Bands, used to measure price volatility, show that Nvidia is currently striving for stability while facing market pressures.
Analysts projected that a continuation below the 20-week moving average could signal more bearish momentum for NVDA, potentially retesting the lower Bollinger Band between $84 and $102. Additionally, data from The Kobeissi Letter highlighted the negative trajectory for Nvidia, likening its trading patterns to a penny stock.
The stock has been influenced by investor worries related to economic conditions, including concerns over a potential Federal Reserve interest rate cut and investigations into antitrust issues. While Wall Street analysts foresee a potential 47% upside for Nvidia over the next year, reaching an estimated $151, the company’s recovery prospects in the short term remain uncertain.
Please note that this rewrite should not be considered as investment advice, as the value of investments can fluctuate, subjecting capital to risks. The original article “Is Nvidia (NVDA) set for further losses below $100?” can be found on Finbold.