Nvidia looks poised for a pullback after its strong start to 2024, according to Wolfe Research.
When the stock market opened Monday, Nvidia reached Wolfe's recent target of $600 a share, leaving it "now deeply overbought and due for a consolidation," said Rob Ginsberg, Wolfe's technical analyst, in a note to clients.
The RSI measures the magnitude and speed of price movements, with any figure over 70 signaling that a stock is overbought and potentially ripe for selling.
NVDA YTD mountain Nvidia shares have gained nearly 20% this year If Nvidia is vulnerable to a pullback, it's far from alone, according to Ginsberg.
Wolfe is not inclined "to chase vertical moves," and at such times would rather harvest some gains, the analyst wrote.
Persons:
Rob Ginsberg, Ginsberg, Wolfe, — CNBC's Michael Bloom
Organizations:
Nvidia, Wolfe Research, Devices, Dow Jones, Micro Computer