Chart of the Day – Thursday, June 20, 2024
Patrick Dunuwila
The Chart Report
11 months ago
1 MIN READ
Hmmmm? $NVDA pic.twitter.com/1IhUk3pyqo
— Michael Kahn, CMT (@mnkahn) June 20, 2024
Today’s Chart of the Day was shared by Michael Kahn (@mnkahn).
- Nvidia ($NVDA) finally cracked today, forming a bearish engulfing candle. However, it must continue lower tomorrow before this bearish pattern can be confirmed.
- $NVDA printed a similar candle on March 8th before correcting -20%. Michael compares the two reversal candles, pointing out that volume was twice as heavy on March 8th. Today’s volume was pretty average, suggesting the bears lack conviction.
- Nobody should be surprised if $NVDA pulls back here. The stock has been stronger than usual lately, surging +70% in the past two months.
The takeaway: $NVDA formed a bearish engulfing candle today after a remarkable two-month rally. Friday’s candle will either confirm or invalidate this bearish pattern.
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