📈 NVDA Sells Off
And here's what is coming next.
NVDA CES Presentation
On Monday night, Nvidia CEO Jensen Huang presented at the Consumer Electronics Show, a highly anticipated event.
The stock traded up on Monday as traders expected an announcement or news of some sort - and they got it.
Huang announced that Nvidia would be entering the personal AI space with a supercomputer starting at $3000.
This is massive news as it represents the company’s first foray into personal AI, which has not yet established a dominant player.
Companies like Apple and Microsoft have attempted to enter this space (with Apple Intelligence and Microsoft Copilot), but have yet to release a product that gains significant traction with consumers.
Nvidia now has an opportunity to be a leader in both business AI and personal AI.
Sell the News + Maribuzo Black
Yesterday, the stock gapped up on this news only to sell off all day, resulting in a Maribuzo Black candle. This is when the opening price is the high of the day and the closing price is the low of the day.
Above you can see the last three times that NVDA has given us a Maribuzo Black candle and what happened afterwards.
It is clear that this often marks short-term tops. Learning from the past, it is fair to assume that this daily candle will mark a short-term top as well.
It is pivotal to always be looking at historical patterns to help you develop your thesis on what’s to come.
I dive deeper into the NVDA sell-off as well as what I am seeing on the indexes and which stocks are showing relative strength in the video below: