The tech-heavy NASDAQ index is under heavy pressure today, led by sharp declines in semiconductor stocks. Sentiment has soured following news that Nvidia will take a $5.5 billion charge due to new U.S. export restrictions that require licensing to ship its H20 AI processors to China and other countries.
Currently,
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Nvidia (NVDA) shares are down 7.25%
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AMD shares have dropped 6.76%
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Broadcom (AVGO) is lower by 2.93%
The NASDAQ index is currently down 351 points (-2.07%) at 16,475.75, after falling to a session low of 16,420.56. The high for the day reached 16,600.36.
From a technical perspective, today’s sharp drop has taken the index back below its 100-hour moving average (blue line on the chart above), currently at 16,673.30. The price had moved above this level on April 14 and remained there through yesterday’s session, but today’s gap back below suggests a renewed bearish tilt.
Looking ahead, the next key downside target is the 50-hour moving average, which comes in at 16,330.78 and is gradually rising.
Nvidia’s stock opened lower today and fell below its 100-hour moving average, currently at $106.11. Also in close proximity is the 50-hour moving average at $106.46, reinforcing this area as a firm resistance zone. To regain bullish momentum, the price would need to break back above both moving averages and hold.
Yesterday, Nvidia briefly moved above its 200-hour moving average—the third attempt in the past week—but once again failed to sustain the breakout, highlighting a recurring technical rejection.
Adding to the bearish tone, the high from April 9 stalled at $115.03, which corresponds to the 50% retracement of the decline from the February high. The inability to break through that level has further dampened bullish sentiment.
This article was written by Greg Michalowski at www.forexlive.com.