Nvidia started the week off with a bang, surpassing Apple and Microsoft to become the world’s largest company by market value. However, the situation took a drastic turn by the end of Thursday’s trading, October 20th. The stock reached a historical high of $130 per share at the opening, but then experienced a significant decline and ultimately closed a little over $126.
The downward trend continued during the extended trading session, and at the time of writing this article, Nvidia’s stock price further dropped to $126.86.
This decline in stock price not only caused Nvidia to lose its top position as the world’s most valuable company, but also formed a bearish pattern on its chart.
This pattern consists of a smaller green candle and a larger red candle, indicating a possible reversal of the previous upward trend. The bearish signal suggests that investors might consider selling or shorting, but it does not guarantee that the decline will continue.
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In addition, the rapid fluctuations in the stock price have made it difficult to determine clear support and resistance levels. However, as long as Nvidia’s stock price remains above $121, close to its post-split price, it is unlikely to experience a significant market downturn during the expected recovery period.
In terms of background, if this market trend had occurred before the recent 10-to-1 split, the stock would have experienced a decline of over $100 in a single trading day.
