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Nvidia Corp (NVDA) - December 28, 2022

After spending seven months stuck in the Red Unfavored Zone of the SIA S&P 100 Index Report, Nvidia Corp (NVDA) shares had seemed to be on the rebound, clawing their way back up into the Neutral zone. Their relative strength recovery came to an abrupt end yesterday as the shares tumbled back down into the Unfavored Zone, falling 35 spots to 86th place with the shares falling 7.1%.

Earlier this month, Nvidia (NVDA) shares failed to break through a long-term downtrend line near $185, indicating that the previous advance up from near $110 was more likely a bear market rally than the start of a new uptrend. Since then, the shares have been crumbling, and yesterday they staged a major breakdown.

Taking out the $150 round number and their 50-day average, which reverse polarity to become initial upside resistance, has confirmed the start of a new downswing. Potential support appears in the $125-$130 area then the previous bottom near $110.

An upswing in Nvidia Corp (NVDA) shares which had started back in October and consisted of three double top breakouts and two high poles appears to have come to an end. After running into resistance near $185.00 and peaking at another lower high, NVDA has turned sharply downward, completing bearish Double Bottom and Spread Double Bottom breakdowns to signal the start of a new downswing, and perhaps a resumption of the shares’ primary downtrend.

Based on previous column highs and lows, downside support may appear near $131.55, $119.15, or $110.05. Initial resistance on a rebound appears near $154.15 based on a 3-box reversal.

With the lowest bearish SMAX score of 0, NVDA is exhibiting weakness across all asset classes.

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