NVIDIA Corp (NVDA)

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Semiconductors ($DJUSSC) and Nvidia Corp (NVDA)
By: Tom Bowley | July 23, 2024

• Semiconductors:



Semiconductors will be the primary key for technology. This chart doesn't look a whole lot better than the XLK chart itself. I circled 4 very bearish days in the past month that suggest significant distribution. Prior to mid-June, I don't know if we had 4 similar days earlier in all of 2024. RSI support is teetering with one test already at 40. We have a double bottom on the AD line and a rapidly-deteriorating PPO, though, for now, it remains above centerline support. We don't have a major breakdown just yet, but key warning signs are there. And the semis represent a huge chunk of the XLK. I'm not showing it here, but the DJUSSC has a negative divergence on its weekly chart, so short-term breakdowns could become much more severe.

Working our way down the totem pole, next up is NVIDIA Corp (NVDA), which has problems of its own. Because it's the poster child of semiconductors, a breakdown in this critical stock would be very detrimental to both the semiconductor group and technology, as a whole. Check out NVDA and zero in on its key areas of support:



Listen, here's your leader in semis. Everyone will be watching to make sure NVDA holds support. Make no mistake, I am BULLISH NVDA, the semis, and technology over the long-term, but could Q3 be a problem? Yes, it very well could.

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