|The NVDA generated strong volume surges over the past 2 months. The NVDA stock made more than 223% in 2016 and we have not seen such subnormal trading activity then. Now, by running up 36% the NVDA stock's flow of the money (volume X price) hit $147 Billions over 2 month period - almost the entire 2016 year's flow of the money ($162 B).|
Some group of traders, by some reasons, dumped $147 B of the NVDA stocks over the past 2 months. In volume analysis it is called as "distribution phase before a reversal down".
The NVDA stock is a good one, there is no doubt about it. The video recognition technology is in high demand and this demand will be growing as as artificial intelligence evolves. This stock could be good choice for a run up. However, as of now, volume analysis suggest that we will see a decline on this stock and this correction down should be strong enough to attract back those institutional investors who dumped $147 B of this stock over the past 2 months.
Chart courtesy of marketvolume.com