The Nvidia share faces a potentially critical turning point: The dreaded “Death Cross” threatens a technical signal that often announces a downward trend.
• Nvidia share: Bear pattern threatens
• 50-day average could fall below 200-day average
• Is there a downward threat to a downward trend?
The Nvidia share has been able to grow strongly in recent years and multiply its value. After she was still worth $ 26.45 on the US Tech Exchange Nasdaq, she costs around $ 115 today (as of 18.03.2025). That means an increase of around 440 percent within these three years. Most recently, the share, which was worth more than $ 150 in early January, had given up something again. And now a pattern could also be drawn in the chart of the Nvidia share that investors could worry.
Is there a threat of a downward trend?
In the Nvidia share, a bearish pattern, known as “Death Cross”, could soon show, as Marketwatch reports. With this pattern, the 50-day average falls below the 200-day average, which investors are happy to use to identify purchase and sales signals. If the price of a share climbs over the 200-day line, if this is rated as upward trend, the course falls below the 200-day line, and the development is rated as a downward trend.
The 50-day average was on Monday, as Marketwatch reported on fact set data, at around $ 129.04 after it was still $ 129.30 on Friday and until then has fallen by an average of 30 cents a day within five days. In the meantime, the 200-day average of $ 127.64 on Friday rose to $ 127.68 on Monday and had a daily increase of around 6 cents last week. However, the development of the moving average could of course also change.
That shows the past
According to the Marketwatch, Death Crosses has existed since Nvidia’s IPO. In nine cases, the share then went down further down. The declines ranged from 6.5 percent to 78 percent, with an average decline of 41 percent, while the time span varied between the death crosses and the levast stands between a week and nine months.
The last Death Cross showed up in April 2022, reports Marketwatch. At this point, the share had already clearly returned from its record -year course from November 2021. It then continued to lose significantly: until it reached its low point in October of the same year, it dropped by a further 47.7 percent.
In the three cases in which the share did not fall after the CrossOvers, she reached its low point according to Marketwatch in 2006 four days after the crossover, 2007 one month before the crossover and in 2015 two days before the crossover.
Course profit ratio in focus
However, Nvidia’s price-profit ratio, which currently appears at around 25.9, currently appears positive. When the last Death Cross appeared, which led to a further sale of the Nvidia share, the KGV was significantly higher at 36.7, while the KGV had reached its low point at the last Cross of Cross.
Analysts expect that
While the Death Cross could threaten, analysts are confident for the Nvidia share. In the past three months, 42 Wall Street analysts have given a 12-month course goal for the Nvidia share at Tipranks. Of these, 39 recommend the share certificate for sale, while three have given a hold rating. The average price target is $ 177.23 and thus implies an upward potential of 53.27 percent compared to the last course of $ 115.53 (as of 18.03.2025). The maximum forecast is $ 220.00 and the low forecast is $ 130.00.
Editor finance.net