Shares of NVIDIA Corp (NASDAQ: NVDA) remained flat after hitting a record high near $180, marking a 100% surge since April, with the company now valued at $4 trillion. However, technical indicators like the MACD and RSI are signaling potential downward momentum, raising concerns ahead of August’s earnings report.

MACD, a momentum indicator, recently showed a bearish crossover, a rare event for a stock on a strong uptrend. The RSI, measuring overbought conditions, is at 71, indicating a possible reversal. NVIDIA’s P/E ratio has surged to nearly 60, underscoring the need for a strong earnings report to justify the stock’s rally.

Analysts, while positive on NVIDIA’s prospects, are cautious about the technical signals. Despite warnings, sentiment remains bullish, with price targets as high as $220. However, short-term traders and those considering entry may want to wait and observe how the stock responds to the technical pressure and upcoming earnings report.

For long-term investors, the technical signals may be noise, given NVIDIA’s strong fundamentals and market positioning in AI-related industries. However, caution is advised for short-term traders, with the next few weeks likely to be critical for the stock’s performance. Wall Street will closely monitor how NVIDIA navigates through this period amidst wider market sentiment and trading momentum.

Read more at Nasdaq: NVIDIA: A Major Indicator Just Flashed Sell, But Should You?