After Nvidia's meteoric rise followed a meteoric fall.
From January 2017 to last October the stock rose by nearly 170%, reaching its highest value of $292.76 in the beginning of October. But since then in only four months it has lost half of its value.
Just last week, the Nvidia slid more than 9 percent after the company cut guidance, based on deteriorating economic conditions in China. After the bottom reached in the days around Christmas, shares rose 20%, which some might see as an indication that the worst is over, but then followed the fall from last week.
According some market watchers Nvidia is no longer up in line with the S&P 500. "It's definitely not an interesting buy because you still there's a significant slowing in the cloud market." The crypto balloon burst is also a reason to stay away from Nvidia.
The stock is currently trading well below its 200-day moving average — $149.18 versus a $221.92 average. As long as the spread between these two levels is so large it is not anticipated the stock breaking above $185.
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