Nvidia (NASDAQ: NVDA) stock price has started to show signs of weakness after a remarkable rally this year. The bulls seem to be resting after a failure to gain strength above the key psychological level of $500. The shares of the American chipmaker have surged 207% since the start of 2023.
After a 0.21% uptick in its last trading session, Nvidia shares slightly slid in the pre-market on Friday. The AI company has smashed its two consecutive quarterly earnings reports due to the soaring demand for its AI chips. Due to the ongoing correction, the stock has been down 7.65% since the start of September 2023.
Nvidia CEO Liquidates $112M In Nvidia Shares
According to the latest news, Nvidia CEO, Jenseng Huang has sold $27 million worth of shares. This puts the total liquidations by the Nvidia boss in the past few days at a staggering $112 million. Many retail investors are not happy with the move.
The recent large-scale liquidation by the CEO has made some analysts bearish on the Nvidia stock price. As per the reports, Nvidia stock took a massive nosedive and plummeted 64% when Huang sold the shares last time in January 2022. Nevertheless, the stock still closed 0.21% higher on Thursday.
Nvidia Stock Price Forecast
The latest analysis of the NASDAQ: NVDA chart shows that the shares of the GPU maker have broken below the upward trendline. If the stock drops below the $450 level, then a move towards the $406 support level would be on the cards. Nvidia price prediction will flip very bearish if bulls fail to hold this key support level.
As long as the stock remains below $500, it is not worth entering into a long position on Nvidia as the risk-to-reward ratio is very high. The massive price gap at $306-$368 is not healthy for a sustainable bullish price action. That’s why I expect it to be filled in the coming months if the equities enter into a deeper correction.
In the meantime, I’ll keep sharing updated Nvidia shares and my personal trades on my Twitter, where you are welcome to follow me.
