NVDA Stock Analysis: Reversal Pattern Forming on the Chart

<img src="https://images.unsplash.com/photo-1662947683395-1ce33bdcd094?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDQwfHxudmlkaWF8ZW58MHx8fHwxNjk0Njg0Nzc5fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="NVDA Stock Analysis: Reversal Pattern Forming on the Chart" /><p>NVDA stock has been a stock market leader throughout 2023 amid the AI boom. NVDA&apos;s share price rose by more than 200%, allowing NVidia&apos;s capitalization to exceed USD 1 trillion.</p><p>However, a pattern is forming on the chart, warning that NVDA&apos;s share price may decline. This is a diamond pattern A-B-C-D (determining the position of point D still takes time), which is formed from intersecting parallel lines of support and resistance. They are shown on the chart using ascending and descending channels.</p><p>Even though this instance of the pattern is far from the standard, it deserves attention.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/143.png" alt="NVDA Stock Analysis: Reversal Pattern Forming on the Chart" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/143.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/143.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/143.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/143.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Arguments confirming that the pattern can work:<br>→ in September, NVDA stock performed weaker than the S&amp;P 500 index;<br>→ at the top of the diamond, there were high trading volumes, according to the NASDAQ exchange. The current price is below the levels at which high-volume transactions were recorded at the end of August. This can be interpreted as the fact that large market participants are taking profits (and/or even taking a short position);<br>→ the media is disseminating information that NVDA shares were sold by Berkshire (managed by Buffett) and the company&apos;s president Jen Huang herself — according to Yahoo Finance, on September 11, she sold about 30k shares.</p><p>Could the AI boom be winding down? According to investor Rob Arnott, Nvidia stock is a bubble. And if it bursts, it could trigger a collapse of the entire stock market.</p>