BTIG technical analysts reflected on today’s price action in Nvidia (NASDAQ:NVDA), with the stock trading around 3% lower as it tests “key” support near $400.
The stock is up around 180% year-to-date through Monday’s close. From last October’s lows, the stock is up nearly 260%.
“This is almost double the next best return of any stock in the 'Magnificent 7', which is Meta (NASDAQ:META), which is up 137%,” the analysts said.
Nvidia is trading heavy today after the WSJ reported earlier this morning that the company may face $5 billion in lost orders due to chip restrictions on China.
“Nvidia is the undisputed 'King' of the current market, and so if one is making a bearish case for the market, for tech, for semis (as we are), then it has to involve NVDA finally succumbing,” the analysts added.
More precisely, the analysts believe that Nvidia dropping to test the rising 200-DMA (352) is “highly likely”
“Weekly MACD for NVDA is firmly on a sell signal,” they concluded.
At 10:30 EDT (14:30 GMT), Nvidia shares were down 3.1% on the day.