NVIDIA experienced a significant 10% drop in line with a widespread market selloff. While the long-term positive trajectory of the stock remains intact, caution is advised for short-term trading decisions. It is crucial to carefully consider entry and exit points amidst the current market volatility.

Last Friday saw a major event on Wall Street as a tech sell-off affected big players like Nvidia Corporation (NASDAQ: NVDA). Nvidia's stock plummeted by 10% in a single trading session, reaching $762 per share, its sharpest decline since the Covid pandemic began in March 2020. The spill-over effects were felt across the AI sector, raising concerns about the overall market dynamics.

The trigger for this market turbulence was Super Micro Computer (SMCI), another heavyweight in AI, withholding its usual preliminary earnings data, leading to a sharp sell-off that impacted the entire AI sector, Nvidia included. Analysts maintain a positive outlook on Nvidia's upcoming earnings report scheduled for May 22, predicting a robust 38% profit growth for the first quarter.

As investors prepare for potential market fluctuations, analyzing charts can provide valuable guidance on the best points for entry and exit when trading Nvidia stocks in the short and long term.

Looking at Nvidia's long-term chart reveals a history of significant bull runs. Initially driven by the Bitcoin mining craze, the stock skyrocketed from $6 to over $40. Following the post-COVID market rally, it surged nearly sevenfold from below $50 to around $350.

While the recent drop may have dampened spirits, the long-term bullish trend that began in January remains intact. It only raises concerns if the stock slips below $660, its immediate support level, which could jeopardize its positive long-term trajectory. Traders should approach short-term decisions cautiously given the stock's current volatility, balancing both long and short positions thoughtfully. With various potential scenarios in play, setting strong stop losses and looking out for key resistance levels will be vital for navigating Nvidia's stock movements effectively.