On February 3, 2025, President Trump announced new tariffs on imports from Mexico, Canada, and China. This caused U.S. stock futures to drop as fears of a trade war grew. Tech and semiconductor stocks, like $NVIDIA(NVDA)$ and $Broadcom(AVGO)$ , fell due to worries about higher costs and supply chain issues.
Earlier I wrote an article on Nvida (article here) detailing about technical outlook for the stock.
I wrote:
Short-Term: The immediate focus is on the $129.51 support level. As the price hovers around this mark, its ability to hold or break will be crucial in determining short-term price action. A rebound from this level could reinforce bullish sentiment, whereas a break below could lead to a test of the lower support at $102.72.
This article provides an update to the levels highlighted.
NVIDIA (NVDA) Technical Analysis
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Current Price Movement:
NVDA is trading at $120.07 as of the last session, showing a 3.67% drop. Pre-market price indicates further decline, trading around $116.45, confirming that the support turned resistance is holding firm.
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Resistance and Failed Rebound:
Price is trapped below the $122-$127 zone, which previously acted as support and is now a strong resistance. The recent rebound attempt was rejected at this resistance level.
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Bearish Divergence Signal:
The MACD shows a bearish divergence, where the price made higher highs while the indicator displayed lower highs.This divergence suggests weakening momentum and increasing selling pressure.
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Short-Term Outlook:
If the price continues below the resistance, the next potential support lies around $102.70. A break below $116 in today's trading could lead to further downside pressure.
Trading Strategy Using DLCs (Daily Leveraged Certificates)
Short-Term Focus:
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Traders may explore short DLCs for opportunities to benefit from potential price weakness in NVDA if resistance near $122-$127 holds firm.
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Some DLCs tracking NVIDIA include:
DLC (Short): $NVDA 3xShortSG261006(NVDW.SI)$ $NVDA 3xShortSG261204US$(NVUW.SI)$
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Investors are able to trade NVDA DLCs during SGX opening hours (from 9am to 5pm) without waiting for US market to start trading (at 10.30pm SGT).
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Disclaimer:
This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.
This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
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