• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Nvidia's Decline Doesn't Make It a Buying Opportunity - Yet

NVDA has weakened despite great fundamental numbers.
By BRUCE KAMICH
Feb 26, 2021 | 07:54 AM EST
Stocks quotes in this article: NVDA

Jim Cramer told viewers of Mad Money Thursday night that stocks are plunging as investors fear a growing economy will lead to inflation and rising interest rates. High-growth stocks were among the hardest hit groups, Cramer said, with stocks like Nvidia (NVDA) which reported very strong quarterly numbers.

In his first executive interview of the evening, Cramer spoke with Jensen Huang, Nvidia's CEO, to learn more about what's driving the company's growth. Huang touted artificial intelligence as one of the main drivers for Nvidia. He said AI is an amazing invention that's being used in everything from computer vision to robotics to speech recognition in industries from health care to transportation.

Additionally, Huang noted that gaming continues to grow and game platforms like Fortnite are only getting bigger and more immersive.

Let's check out the charts of NVDA again. We looked at NVDA Thursday afternoon but let's see how the close turned out.

In the updated daily Japanese candlestick chart of NVDA, below, we can see that prices closed near the low of the day (large red candle) and below the cresting 50-day moving average line.

The On-Balance-Volume (OBV) line shows weakness this month and tells us that sellers of NVDA are becoming more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.

In the weekly Japanese candlestick chart of NVDA, below, we see some technical "problems." Prices have made an evening star top reversal the past three weeks.

The weekly OBV line is showing the start of a decline. The MACD oscillator is still declining and failed to cross to the upside after several weeks of narrowing.

In this daily Point and Figure chart of NVDA, below, we can see a potential downside price target in the $472 area.

Bottom-line strategy: The charts and indicators of NVDA have weakened despite great fundamental numbers. Continued broader market weakness is likely to spill over to NVDA and the $510 area remains the key. A close below $510 on heavy volume is likely to precipitate further declines. Stand aside for now.

(Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Semiconductors & Semiconductor Equipment | Technology | Gaming | Mad Money | Executive Interview

More from Stocks

The 5 Pillars of Exceptional Trading

James "Rev Shark" DePorre
Apr 10, 2021 10:00 AM EDT

When you put them together, trading success is nearly inevitable.

Market's 'Superficial' Highs Are Only Skin Dip

James "Rev Shark" DePorre
Apr 9, 2021 4:36 PM EDT

You can't call this market overbought when so much of it isn't participating.

Pinterest: Double Top or Breakout Pending?

Bruce Kamich
Apr 9, 2021 3:00 PM EDT

What would I do in this case? Here's the logical choice.

I'm Continuing to Build a Position in Skillz

Timothy Collins
Apr 9, 2021 2:24 PM EDT

SKLZ shows explosion moves to the upside when it emerges from the oversold area.

Royalty Pharma Shows Promise

Bruce Kamich
Apr 9, 2021 1:10 PM EDT

Here's how traders should play RPRX right now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • 08:05 AM EDT BOB LANG

    Bitcoin vs. Gold: Which Should You Invest In Now?

    Read my article TheStreet here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login