Nvidia started the week with a bang, surpassing Apple and Microsoft to become the world’s largest company by market value. However, by the closing of the stock market on Thursday, June 20, the situation had changed dramatically. After starting the day at a record high of $140 per share, the price saw a significant drop and closed just above $130.
The decline continued into the extended session, with Nvidia’s price dropping even further to $126.86 at the time of writing this article. This price drop not only caused Nvidia to lose its top spot among the world’s most valuable companies, but also created a bearish pattern in the stock chart.
The mentioned pattern consists of a smaller green candle followed by a larger red candle, indicating a potential reversal of the previous uptrend. The bearish signal suggests that investors may consider selling or taking a short position, although the continuation of the decline is not guaranteed.
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Furthermore, the rapid price movements of the stock made it difficult to determine clear levels of support and resistance. However, as long as Nvidia’s shares remain above $121 – close to the post-split price – it is unlikely that they will experience a major market decline during the expected recovery.
For context, if this market movement had occurred before the recent stock split at a ratio of 10 to 1, they would have dropped by more than $100 within a single trading session.