Nvidia's Stock Falls 5.74% in Four Sessions as Bearish Candlestick Patterns and Death Cross Signal Downtrend

Nvidia (NVDA) has experienced a four-day losing streak, with a 5.74% decline in the past four sessions, closing at $172.7 on 2026-03-20. This downward momentum is reflected in candlestick patterns, where long lower shadows and short upper shadows dominate, suggesting bearish control. Key support levels emerge at $171.72 (March 17 low) and $175.785 (March 19 low), while resistance is clustered around $179.98 (March 19 high) and $180.4 (March 18 close). A break below $171.72 could confirm a deeper correction.

Candlestick Theory

The recent price action forms a bearish "hanging man" and "gravestone doji" pattern on March 17 and 19, indicating rejection at higher levels. The absence of bullish reversal patterns, such as a hammer or morning star, suggests continued selling pressure. The 2026-03-20 session’s intraday high of $178.26 and close at $172.7 highlight a 4.8% intraday drop, reinforcing short-term bearish bias.

Moving Average Theory

Using 50-day, 100-day, and 200-day moving averages, the 50-day line is currently below both the 100-day and 200-day lines, forming a bearish "death cross" configuration. The 50-day MA is trending downward at approximately $181.50, while the 200-day MA sits near $186.00. This divergence suggests a medium-term bearish trend, with the 100-day MA (around $183.50) acting as a dynamic resistance. A sustained close above $183.50 could trigger a retest of the 200-day MA, but current momentum favors a continuation of the downtrend.

MACD & KDJ Indicators

The MACD histogram has been contracting since mid-March, indicating weakening bearish momentum. However, the MACD line remains below the signal line, maintaining a bearish signal. The KDJ indicator shows stochastic divergence: while prices are making lower lows, the %K line is forming higher lows around the March 16 and March 13 sessions. This hints at potential short-term oversold conditions, with the RSI hovering near 28 (oversold territory). A stochastic crossover above 20 may precede a countertrend rally, but confirmation is needed.

Bollinger Bands

Bollinger Bands have narrowed in recent weeks, signaling a period of low volatility and potential breakout. The price has tested the lower band multiple times, with the March 20 close at $172.7 sitting just below the 2σ level. A sustained move above the upper band (currently ~$183.50) would require a reversal, but the bands’ contraction suggests a continuation of the current range-bound behavior is more probable.

Volume-Price Relationship

Trading volume has spiked during the recent declines, with March 16 and March 20 sessions recording volumes of 217 million and 241 million shares, respectively. This aligns with the price action, validating the downtrend. However, the March 20 session’s volume failed to produce a lower close than March 19, suggesting potential exhaustion. A follow-through increase in volume on further declines would confirm bearish strength.

Relative Strength Index (RSI)

The 14-day RSI has dipped to 28, entering oversold territory. Historical data shows that RSI levels below 30 often precede short-term rebounds, but without a bullish divergence (price lows vs. RSI lows), this remains a cautionary signal rather than a reversal cue. The RSI is currently aligned with the MACD and candlestick signals, reinforcing the bearish bias.

Fibonacci Retracement

Applying Fibonacci levels to the March 16 high ($188.88) and March 20 low ($172.7), key retracement levels include 23.6% at $182.00, 38.2% at $179.50, and 61.8% at $175.80. The 38.2% level coincides with the March 19 high ($179.98), which may act as a near-term resistance. A break below the 61.8% level ($175.80) could target the 78.6% retracement at $172.00, aligning with the March 20 close.

Confluence of bearish signals from candlestick patterns, moving averages, and volume validates the current downtrend. Divergences in stochastic indicators and the RSI’s oversold reading suggest a potential short-term bounce, but the broader technical landscape favors continuation below $175.80. Traders should monitor the 50-day MA for a potential retest and watch for volume surges that could signal a shift in momentum.