Nvidia Still Extended?
Is the king of semiconductors, NVDA, and briefly the world’s largest company by market cap with the intraday high of 153 on 1/7 still ahead of itself? The MONTHLY chart below shows just how extended the stock can be with an RSI still near a white-hot 80 level. There have been a succession of tiring candles as well with a doji and several spinning top candles since mid-2024 which often indicate exhaustion. Bulls may state that bears have been given ample time to drag this down and they have been unable to. Is a visit to the 50 MONTH SMA in store sometime perhaps later in 2025? That would be a dreadful move for the stock, and would certainly affect the overall market. Of course, as long as the line continues to slope higher PRICE will catch up so I am not declaring a move toward 50 where it currently sits, but notice the stock does tend to make contact with the line every 3-4 years, doing so back in 2019 and 2022. Notice the leadership the stock displayed on RSI, regularly trading above the overbought 70 RSI number the last decade, with two exceptions, and an undercut below that level saw PRICE descend to the 50 MONTH SMA. Deja vu?