NVIDIA Death Cross, Tesla Bottom And Ambarella's Downtrend - Technical Analysis

NVIDIA Stock Testing 100 Day Simple Moving Average.

nvidia_stock_nvda_technical_analysis_chart_03_07_2017

NVIDIA Corporation (NASDAQ:NVDA) stock has been in a bearish trend for quite some time now. After rallying for the past six months NVDA stock has given up some gains. After hitting a high of $120, NVIDIA stock is trending down. As can be seen from the chart, NVIDIA is currently testing its 100-day moving average at around $95 level. As the NVIDIA technical analysis charts show, the volume levels are high indicating that the downtrend in the stock is strong. MACD has fallen below the zero center line providing more strength to the bearish trend. Another bearish signal is coming from the 20-day SMA and 50-day SMA. 20-day SMA is making a bearish crossover with the 50-day SMA. A crossover where a shorter moving average crosses the longer moving average from above is generally a strong sell signal.

Earlier, in a bearish crossover, NVDA stock breached the supports at the 20-day and 50-day moving averages. 20-day SMA was especially a strong support line for NVIDIA stock. In the last six months, the trend line had provided support to NVIDIA stock on multiple occasions. While the bearish trend is strong, NVDA stock is currently having support from the 100-day SMA and the lower Bollinger Band. After falling to $95.15, the stock bounced back. NVIDIA is likely to test the 100-day SMA again today.

Tesla Inc Stock Will Find Support From 50 Day Moving Average.

tesla stock technical analysis 03_07_2017

Shares of Tesla Inc (NASDAQ:TSLA) have been hammered since the company came out with its earnings report. TSLA stock is down by more than 10% since the earnings. A lackluster earnings announcement and rating downgrades have taken a toll on TSLA stock. As can be seen in the Tesla technical analysis chart below, in a bearish move, Tesla stock crossed below the 20-day simple moving average for the first time since December 6th on heavy volumes. The stock continued to slide down to $245 levels where it found support from the 50-day SMA. Over the last few days, 50-day SMA has provided strong support to TSLA stock. This trend line is likely to provide support in the next few trading days. The declining volumes indicate that the bearish trend is losing its steam. The number of shares traded has declined from almost 15 million at the start of the downtrend to 3.3 million yesterday. Tesla stock will continue to trade around the 50 day SMA for now. However, if Tesla stock breaches the 50 day SMA support line, then it could go lower.

Strong Bearish Signal For Ambarella Inc Stock.

ambarella stock technical charts 03_07_2016

Ambarella's Technical analysis charts are showing strong bearish signals. Ambarella Inc (NASDAQ:AMBA) stock started to decline after the 100-day and 200-day simple moving averages formed a death cross. A death cross occurs when a shorter period moving average cuts a longer period moving average from the top. It is a strong bearish signal. There is a bearish crossover in MACD too. The signal line has crossed over MACD line from below. This indicates a continuation of the bearish trend. The stock has now crossed into the lower half of the Bollinger Bands and is likely to trade lower.

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Kumar Abhishek Kumar Abhishek   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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