Comparing the price action to the RSI 20 indicator we can see a bearish divergence forming.
While NVDA has gone on tremendous tear lately we start to see signs of weakness in the price action and RSI. This does not mean its time to sell. I would recommend tightening up stop losses to protect against possible downside risk.
- RSI is trending downward
- Price action is continues to trend upward during same time
- Gives indication that a reversal is becoming likely
- RSI still remains above 50 which is bullish indicator overall
While NVDA has gone on tremendous tear lately we start to see signs of weakness in the price action and RSI. This does not mean its time to sell. I would recommend tightening up stop losses to protect against possible downside risk.
