NVIDIA stock’s technical analysis
NVIDIA (NVDA) is having a tough time in 2019 as it tackles the aftereffects of the cryptocurrency bubble bursting and data center spending slowing down. These two factors have pulled the stock down more than 50% from its peak of $292.76 in early October 2018. The stock saw a technical downturn in November 2018 and has since been trying to regain technical strength, which rival Advanced Micro Devices has achieved.
MAs (moving averages) can be used a assess a stock’s direction. Short-term MAs being lower than long-term MAs suggests technical weakness. NVIDIA is currently trading below its 50-day MA, which is lower than its 200-day MA. The stock has fallen 20% this month, and headwinds have made NVIDIA oversold.
The entire semiconductor industry’s technicals are headed downward. The VanEck Vectors Semiconductor ETF is trading below its 200-day MA as US-China trade tensions are creating demand uncertainty.
On the other hand, AMD is trading above its 50- and 200-day MAs. AMD stock rose 10% yesterday on new product announcements.