The Nvidia share price is trading slightly higher this Thursday, but the bulls are barely hanging on after the bullish gap open to the day. The Nvidia share price candle will close the upside gap, leaving just 0.91% gains to the bulls.
The intraday selling follows the upside gap that met resistance at the 193.83 price mark. The technical picture shows that this move is within the context of the bearish flag’s measured move, following the 21 April breakdown of this pattern.
The fundamental trigger for the recent selloff is the sour sentiment around growth stocks, given the recent lockdowns in China and its impact on the supply chain. In addition, China-linked stocks face pressure and concerns over future Fed rate hikes mount.
What are the price levels to watch? Despite the recent bearishness of the stock, forty analysts on Wall Street have provided a 12-month median price target of 345.00 for the Nvidia share price, with the upper and lower ends of the price band at 400.00 and 160.00. The median price target gives the stock potential for an 86% upside move.
The Nvidia share price bears would be seeking completion of the measured move to the 178.70 support (19 July 2021 low), following the breakdown of the bearish flag on the daily chart. Below this level, a further decline targets the 162.54 support level, 148.33 (22 April and 21 May lows), and the 134.27 price pivot (16 March high and 13 May low) constitute additional southbound targets that become viable if the price deterioration continues.
On the other hand, the bulls would be seeking to initiate a bounce at the 178.70 support following the completion of the bearish flag’s measured move. Any such bounce in this area targets 193.83 initially (18 June 2021 high and 11 August 2021 low). 208.62 and 229.80 (15 March and 14 April highs) form additional barriers to the north if the price advance continues. Only when 229.80 gives way will 241.01 (26 January and 8 April highs) and 260.11 (24 March low) become viable targets to the north.
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This post was last modified on %s = human-readable time difference 16:45