NVIDIA (NASDAQ:NVDA) stock fell nearly 4% Monday, plummeting to a three-week low as investors continued to shift their focus towards cyclical stocks, coinciding with the Dow Jones Industrial Average reaching a new high.
Nvidia attempted to maintain an upward trend that began in August, according to technical charts, but shares failed to hold above the support level of the June 20 reversal high, which was near $141.
Nvidia stock is now approaching a potential support zone, ranging from the July 11 reversal high near $136 to the 50-day moving average close to $134.
A one-day Demark indicator, which is often used to identify potential price exhaustion and the likelihood of an impending price reversal, showed a reading of 13 at 12:45 p.m. This reading can suggest that a trend may be overextended and could be due for a reversal.
Despite the day's losses, Nvidia's stock performance has been notable over a longer period, with the stock having risen 187% this year up to the last close, and an impressive 197% increase over the past 12 months.