As we analyze the weekly chart of NVDA on the Frankfurt stock exchange, we notice a concerning trend. The Relative Strength Index (RSI) has fallen below levels seen during the Liberation Day panic, signaling a technical washout. The recent revelations about Huang have added another layer of selling pressure, pushing the stock deeply oversold. However, this does not necessarily mean the selling is over. In this blog post, we will delve deeper into the technical analysis of NVDA and explore the potential implications of these developments.

Firstly, let’s take a closer look at the RSI chart. As we can see, the RSI has fallen below the levels seen during the Liberation Day panic, which occurred in February. This is a significant red flag, as it suggests that the selling pressure is intensifying. The RSI is a popular technical indicator that measures the magnitude of recent price changes to determine overbought or oversold conditions. When the RSI falls below a certain threshold, it can indicate that the stock is oversold and may be due for a bounce. However, in the case of NVDA, the RSI has fallen to levels not seen since the Liberation Day panic, which could be a sign of a more severe breakdown.

Secondly, the recent revelations about Huang have added another layer of selling pressure. Huang is a well-known short seller who has been targeting NVDA with a series of scathing reports. These reports have led to a significant decline in the stock’s price, as investors have become increasingly bearish on the company’s prospects. The selling pressure has been intense, with the stock falling by over 20% in just a few weeks. This has pushed the stock deeply oversold, which could lead to a bounce in the near term. However, the long-term outlook for NVDA remains uncertain, as the company faces significant challenges in the form of increased competition and declining demand for its products.