Trading Journal: Look For Near-Term Weakness In Nvidia

The following stock has been highlighted by VantagePoint Software, an artificial intelligence platform that provides market forecasts 1-3 days in advance. For a free demo click here.

Shares of NVIDIA Corporation (NASDAQ: NVDA) have been steadily rising in 2018, culminating in an all-time high of $292.76 on Tuesday. 

But the stock has now fallen off 5 percent from that high, and the volatility experienced in the overall market on Thursday has investors on their toes. That said, let's take a look at where the stock is headed in the coming days, and whether NVDA's strong performance will continue

Downtrend Forecasted

VantagePoint's two main indicators, a predicted moving average and neural index, are both forecasting near-term weakness in NVDA. 

The predicted moving average, the blue line on the chart, signals an uptrend when it crosses above the black line, which is a simple 10-day average. You can see how an uptrend was signaled on Sept. 26, prior to the stock's breakout to all-time highs. 

Notice what happened on Thursday—the moving averages crossed back over each other. We can take that as a signal that the stock may fall in the coming days. 

The red-green bar at the bottom of the chart—the neural index—has shifted to red, which serves as a confirmation of this trend. 

Shares of NVDA were trading down 1.5 percent on Friday morning. 

VantagePoint Software is a content partner of Benzinga. To see what their indicators say about other stocks, futures, commodities or ETFs, or to get a free demo, click here.