The Nvidia stock (NASDAQ: NVDA) opened with a gap down on Monday, after hitting the downside resistance line drawn from the high of April 15th on Friday. Then, it was all selling throughout the session. The stock continues to print lower lows and lower highs below that line and thus, we see decent chances for further declines in the near term.
A decisive dip below 560.00 would confirm a forthcoming lower low on both the 4-hour and daily charts and may initially pave the way towards the 536.00 zone, defined as a support by the inside swing high of March 22nd. If that barrier is not able to stop the slide, then we may experience extensions towards the low of the day before, at around 505.00.
Looking at our short-term oscillators, we see that the RSI lies below 50 and points down, while the MACD, although fractionally above its trigger line, is also negative and appears ready to fall below its trigger soon. Both indicators detect downside speed and corroborate our view that the stock could drift a bit lower.
On the upside, we would like to see a strong rebound back above 600.00 before we start examining whether investor interest returned to that stock. The price would also be above the aforementioned downside line and may advance towards the peak of April 27th, at 627.00. Another break, above 627.00, may encourage participants to push the stock towards its record high, at 648.54, hit on April 15th.
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