SANTA CLARA, CA – Tech giant NVIDIA Corp. (NASDAQ: NVDA) provided a day of high drama for investors Wednesday, rocketing to a new 52-week high before pulling back, creating uncertainty for the market’s direction when trading resumes on Monday.
NVIDIA closed the session at
2.09, or 1.33%. The day began with strong bullish momentum, as the stock gapped up from its previous close of
160.98** in the first hour of trading.
However, the celebration was short-lived. The intraday chart reveals that after hitting its peak, the stock met significant selling pressure. It spent the rest of the day in a slow retreat, ultimately closing more than a dollar below its high. This pattern, known as an intraday reversal or a fade from the highs, is often a sign of investor hesitation and profit-taking.
Furthermore, a minor dip in after-hours trading, where the stock slipped to $159.25, adds a small note of caution to the outlook.
Outlook for Monday:
Given the price action, the market is likely to open with a downward or sideways bias on Monday.
While a positive close and a new 52-week high are fundamentally bullish events, the inability to hold those peak levels is a significant tell. It suggests that while buyers were initially enthusiastic, sellers emerged in force at the higher prices, overpowering the upward momentum. This “battle” at the top was won by the sellers by the day’s end.
Investors will be watching closely on Monday to see if buyers can mount another attempt to breach the $161 resistance level or if the profit-taking from Wednesday signals the start of a short-term consolidation or pullback for the high-flying tech sector. The failure to sustain the breakout suggests a period of cooling off is more probable than an immediate continuation of the rally.
