Nvidia continues to show concerning signs Is a crash looming for NVDA
Nvidia, a leading semiconductor company, has seen its share price soar by over 170% so far this year, thanks to its foray into the world of artificial intelligence (AI). However, recent technical indicators are hinting at potential trouble ahead for the high-flying stock.
The Relative Strength Index (RSI), a key technical indicator, has been consistently showing high values, raising concerns about the sustainability of Nvidia’s current price levels and the possibility of an impending crash. Over the past week, the RSI has remained alarmingly high, with readings of 78.72 on June 17 and even higher at 80.81 on June 14.
The surge in RSI readings has coincided with Nvidia’s recent 10-for-1 stock split on June 7, after which the stock price has continued to rise, reflecting bullish momentum. The RSI, which measures the speed and change of price movements, indicates that Nvidia’s stock may be overbought, potentially signaling a price correction in the near future.
Despite being one of the top performers in the technology sector, analysts at TipRanks are forecasting a downside for Nvidia, with an average price target of $126.88 in the next 12 months. This represents a 3.13% drop from the current valuation of $130.98. If Nvidia does experience a correction, it could have broader implications for the tech sector and the overall market, given the company’s significant influence, especially in the S&P 500 index.
It’s important to note that the information in this article should not be considered as investment advice, as investing always carries risks and uncertainties.
