NVIDIA Corp. NVDA shares were trading lower Monday as many companies in the broader tech sector move lower.

A rise in Treasury yields has put pressure on these stocks.

Nvidia was down 2.28% at $299.94 Monday afternoon. 

Nvidia Daily Chart Analysis

• The stock dipped near the 50-day moving average and formed what technical traders call a hammer candle. This candle shows that although the stock dropped, it looks to have bounced back a little.
• The $210 level is an area that once held as resistance, but if the stock falls all the way back down to this area, it may hold as an area of support. The hammer candle the stock is forming is showing strength. 
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been falling in the last month and now sits at 49 on the indicator. This shows sellers were able to take control of the stock, as there is now more selling pressure than buying pressure in the stock.

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What’s Next For Nvidia?

Bullish traders are looking for the stock to close the day with the hammer candle formed. This will show the stock is still seeing strength despite a bad start to the day. Bulls are then looking for higher lows so the stock can continue its bullish push.

Bearish traders are looking for the stock to have more down days and break below the low of the hammer candle. Breaking below this low is key for the stock to see further bearish moves in the future.