Usman Salis
⬤ Nvidia Corporation is hitting a crucial crossroads as its monthly chart shows nearly four months of sideways movement following a major run-up. Recent monthly candles have been bunched together below previous peaks, and the Monthly BX indicator has turned red—putting extra focus on where January actually closes.
⬤ The bigger picture shows Nvidia's impressive climb through 2023 and most of 2024, but momentum has clearly cooled off. Instead of pushing higher, the stock has been stuck in consolidation mode, hovering near its rising moving average without managing to break out to fresh monthly highs. This compression phase is basically testing whether the previous bull run still has legs.
⬤ Here's what makes this important: if January closes around current levels, it would technically mark the end of Nvidia's bull cycle according to this trading system. The Monthly BX staying red backs up that view—the stock hasn't managed a strong enough bounce to flip the indicator back to green and keep the bullish structure intact.
⬤ Monthly closes carry real weight because they tend to define major trend changes and shape how the broader market sees a stock. For Nvidia, what happens during these final days of January could determine whether it gets back on track or slides into a longer period of going nowhere. With the stock sitting at such a technically sensitive spot, the next week or two matters more than usual for figuring out where it heads next.
Usman Salis
