Nvidia stock poised for a sharp decline as NVDA signals strong bearish trend

Nvidia had a strong start to the week as it surpassed Microsoft and Apple to become the world’s largest company by market capitalization. However, the situation quickly changed as the stock experienced a significant drop, closing at $130.78 by the end of the day. Currently, the price stands even lower at $128.81. This drop, while not catastrophic, is significant considering that before the stock split, it would have resulted in a much larger decrease. The decline in price also led to Nvidia losing its top spot to Microsoft and created a bearish engulfing pattern, indicating a potential end to the previous uptrend. While this pattern doesn’t guarantee the end of Nvidia’s rally, it is a strong signal for investors to consider selling or taking a short position. The rapid movement of the stock price makes it challenging to identify support and resistance levels, but there is an indication that as long as it remains above $121, there won’t be a major drop in the stock market for the blue-chip chipmaker.