shares showed signs of steadying after a $430-billion selloff sent traders searching for signals as to where the bottom may beJaipur Investment. The stock rose as much as 5% on Tuesday, set to snap a three-day rout that had pushed it into a technical correction – when a stock drops 10% or more from a recent peak – for the first time since April.While the rout displayed some concerning signals, analysts are focusing on the stock❼longer-term trend.”This is just how Nvidia trades,” an analyst said.Among Nvidia selloffs of this scale, the stock tends to rebound on the fourth day – which would be today – about 63% of the time, according to Daniel O❛gan, MD of equity trading at Mizuho Securities.While technical analysis for insight in historic trading patterns isn❽precise, it can provide a useful road map for investors.Nvidia has soared this year amid unrelenting demand for its chips that dominate the market for artificial intelligence computingUdabur Investment. The latest leg of the advance saw the stock rise 43% from its May 22 earnings report and stock split announcement to the June 18 peak when it closed with a market value of $3.34 trillion, topping Microsoft. Nvidia is still up 144% this year.High options activity was often cited as one of the main reasons for the stock❼climb: market makers in the contracts had to constantly hedge their positions by trading the stock as it moved higher in what is called a gamma squeezeHyderabad Wealth Management. That pressure may be easing following the correction.Buff Dormeier, chief technical analyst at Kingsview Partners, sees short-term support around the $115 level. That❼near a key Fibonacci retracement level, a tool used by technical analysts to identify support or resistance lines for stocks and other assets. The 38.2% retracement from the stock❼intraday low in April to its record high last week is about 2% below Monday❼closing price.Analysts such as Dormeier believe the long-term uptrend remains intact for Nvidia, but they❻ keeping an eye on the $100 level.”For a stock in an uptrend like Nvidia, breaching that first level of support wouldn❽be a concern,” said Bruce Zaro, chief technical strategist at Granite Wealth Management. A drop below $100, however, would be, he said.”That may not have long-term implications, but it would signal that you should be patient, especially in a period where the market is likely to be volatile and have a downward bias as we await the election and the Fed weighing in on rates.”

Agra Investment