Chart of the Day - Thursday, June 20, 2024

🏆 Today’s Chart of the Day was shared by Michael Kahn (@mnkahn).

• Nvidia ($NVDA) finally cracked today, forming a bearish engulfing candle. However, it must continue lower tomorrow before this bearish pattern can be confirmed.

• $NVDA printed a similar candle on March 8th before correcting -20%. Michael compares the two reversal candles, pointing out that volume was twice as heavy on March 8th. Today's volume was pretty average, suggesting the bears lack conviction.

• Nobody should be surprised if $NVDA pulls back here. The stock has been stronger than usual lately, surging +70% in the past two months.

The takeaway: $NVDA formed a bearish engulfing candle today after a remarkable two-month rally. Friday’s candle will either confirm or invalidate this bearish pattern.