NVDA breaks below Tuesday's low

NVIDIA Corporation (NVDA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team


NVDA breaks back below 20-day moving average
NVDA dominated by bears dragging the market lower throughout the day
NVDA breaks below Tuesday's low


NVDA ended Wednesday at 500.58 losing $19.06 (-3.67%), significantly underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 513.11, the share confirmed its breakout through the previous session low after trading up to $12.56 below it intraday.

Daily Candlestick Chart (NVDA as at Sep 16, 2020):

Daily technical analysis candlestick chart for NVIDIA Corporation (NVDA) as at Sep 16, 2020

Wednesday's trading range has been $23.15 (4.47%), that's slightly below the last trading month's daily average range of $24.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NVDA.

Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.

Prices are trading close to the key technical support level at 499.84 (S1). NVIDIA closed back below the 20-day moving average at 511.29. When this moving average was crossed below the last time on September 10th, NVDA lost -1.20% on the following trading day.

Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NVIDIA. Out of 524 times, NVDA closed higher 56.11% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.64% with an average market move of 2.01%.

Market Conditions for NVDA as at Sep 16, 2020

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