NVIDIA (NVDA) was enjoying quite a rally to start the day. All seemed right with the world. As someone recently said to me regarding another company is that it is “a victim of its own success”. This is what happened to NVDA. It appears that the ceiling was reached for investors who were ready to take profits and move on. Over the prior six days of trading, NVDA was up over 19%. It was time for some profit taking.
Today’s decline did set up a bearish engulfing candlestick that would imply more downside ahead on Monday. Will today’s decline harken more selling? We saw that decline before earnings and it didn’t turn into much. It’s time for a pullback or at the very least consolidation, but we wouldn’t be at all surprised if this powerhouse defies gravity further. It wouldn’t be a bad idea to get a stop set here to preserve profits just in case this does signal a more concerted decline.
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