NVIDIA stock downgraded to Sell Candidate

The NVIDIA stock price fell by -2.77% on the last day (Tuesday, 22nd Aug 2023) from $469.67 to $456.68. During the last trading day the stock fluctuated 6.27% from a day low at $453.33 to a day high of $481.74. The price has fallen in 7 of the last 10 days but is still up by 2.25% over the past 2 weeks. Volume has increased on the last day by 8 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 75 million shares were bought and sold for approximately $34.11 billion.

On Aug 21, 2023, it was reported that HSBC gave NVDA a "Buy" grade with a "hold" action.

The stock lies in the middle of a very wide and strong rising trend in the short term and a further rise within the trend is signaled.Given the current short-term trend, the stock is expected to rise 19.62% during the next 3 months and, with a 90% probability hold a price between $463.46 and $608.35 at the end of this 3-month period.

The NVIDIA stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $443.51 and $445.47. A breakdown below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Tuesday, July 18, 2023, and so far it has fallen -3.84%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

On the downside, the stock finds support just below today's level from accumulated volume at $401.11 and $379.80.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, NVIDIA finds support just below today's level at $401.11. If this is broken, then the next support from accumulated volume will be at $379.80 and $378.34.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $28.41 between high and low, or 6.27%. For the last week, the stock has had daily average volatility of 4.54%.

The NVIDIA stock holds several negative signals and despite the positive trend, we believe NVIDIA will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.