For his first "Executive Decision" segment of Mad Money Friday night, Jim Cramer spoke with Jensen Huang, founder, president and CEO of chipmaker Nvidia (NVDA) , on location at the company's headquarters. Huang said their headquarters houses 2,500 employees and was designed to encourage collaboration.
When asked how he's able to lead a company to create such products, Huang said a CEO's job is to look 10 years into the future and to pivot and adapt to fast-changing conditions along the way. He said they began work on ray tracing technology years ago, but only now will it define the next generation of computer graphics. The same will be true for artificial intelligence, self-driving cars and a host of other innovative technologies.
We looked at the charts of NVDA last week, but things look weaker now. Let's check out the charts Monday morning.
In the daily bar chart of NVDA, below, we can see an outside day and lower close on Friday with the lower close being a new low for the move down. The 50-day moving average line is rolling over over now and the daily On-Balance-Volume (OBV) line made a new low for the move down. So far there are no bullish divergences from the 12-day momentum study to point to a possible rebound.
In the weekly bar chart of NVDA, below, we see a number of bearish signals. Prices are below the declining 40-week moving average line so the trend is mathematically bearish.
The weekly OBV line has rolled over and the 12-week momentum study is nearly at zero. Further weakness could move this indicator below zero.
In this Point and Figure chart of NVDA, below, we can see a nearby downside price target of $154 -- this target could be overrun Monday.
Bottom-line strategy: In this current weak environment for the broader market we could see NVDA retest the $150-$135 area.