If Nvidia (NASDAQ:NVDA) stock is falling, the buyers should come calling! Share-price dips will happen from time to time, and there’s no need to lose hope. Just use some basic Nvidia technical analysis, and you’ll undoubtedly discern the terrific buying opportunity with Nvidia stock.
What’s going on, exactly? First of all, Nvidia expects to delay the release of its new Blackwell artificial intelligence (AI) chips. However, Piper Sandler analyst Harsh Kumar isn’t overly concerned, as “strong tailwinds from the Blackwell architecture coming in October will continue to drive revenues well into 2025 as demand exceeds supply.”
In addition, Nvidia got caught up in a recent wave of worry about large-cap technology stocks. As Barclays analyst Venu Krishna put it, tech leaders are in the “penalty box” at this time. This doesn’t necessarily mean NVDA stock will be stuck in that box for much longer, though, so let’s see what the charts are telling us.
Nvidia Stock: Buyers Battle It out With the Sellers
There’s an ongoing tug-of-war between the Nvidia stock buyers and sellers, and it’s too early to declare a definite winner. However, some moving averages can help us to see that the buyers really haven’t capitulated.
This daily candlestick chart shows that Nvidia stock recently fell below the 20-day moving average (shown in blue) and the 50-day moving average (shown in purple). These are short-term and medium-term trend indicators, respectively.
On the other hand, the long-term uptrend remains intact. I know this because NVDA stock is still above its 200-day moving average (shown in black), which is a long-term trend indicator. In addition, the 200-day moving average is on an upward trajectory, which is a positive sign.
Not a Worst-Case Scenario
When a stock falls, you might envision worst-case scenarios, but don’t succumb to your fear. Instead, take a look at weekly candlestick charts, and you’ll get a more sensible, big-picture perspective.
Here’s the weekly candlestick chart for Nvidia stock. Certainly the lines look more bullish than they did in the daily candlestick chart. The stock isn’t even close to the 200-day moving average, and it’s also above the 50-day moving average.
And by the way, you’ll notice that it’s been a good strategy in the past to buy NVDA stock when it hits the 20-day moving average. Of course, there’s no guarantee that this strategy will continue to work in the future. Nevertheless, dip-buying a few Nvidia shares at the 20-day moving average isn’t a terrible idea.
Nvidia Technical Analysis: Respect the Lines and You’ll Be Fine!
The demand for Nvidia’s Blackwell chips will remain strong, even if the new chips release is delayed. All in all, investors shouldn’t let the market’s temporary anxiety about Big Tech shake them out of a perfectly good trade with NVDA stock.
The takeaway is that Nvidia stock is off of its peak price, but it’s not collapsing. Nvidia technical analysis suggests that this is a routine stock-price dip, so feel free to grab some Nvidia shares before the opportunity passes you by.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
