Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

NVIDIA Stock On The Ropes As Semiconductors Leadership Tested

Published 07/01/2022, 12:13 PM
Updated 07/09/2023, 06:31 AM

Active investors must understand the importance of market leadership, both on the way up and down.

And this is proving to be very accurate in the semiconductors sector. Semis played a huge role in the tech bull market, helping to push the NASDAQ Composite and Nasdaq 100 higher and higher over more than a decade.

But, as we have covered several times this year (click here for our latest article on the topic), tech turned lower late last year, and the semis were the warning as a leader to the downside.

So today, we look at a weekly chart of one of the largest semiconductor companies in the arena—NVIDIA (NASDAQ:NVDA).

NVIDIA Weekly Chart

As you can see, a bearish head and shoulders pattern has led to a steep decline. NVDA is now testing crucial dual support (long-term up-trend line and lateral support).

This feels like an important support test for the sector's leadership—and for the market as a whole. Stay tuned.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.