Impact of Nvidia's China Sales and Decline in Tech Stocks

NVDA declined 3% over the past 24 hours to 162.45 and is trading below its SMA20 (167.57) and SMA50 (176.00), indicating a weak short-term trend. Although RSI14 at 35.8 is approaching oversold territory, no reversal signal has yet emerged, and MACD remains in negative territory, slightly below its signal line. Uncertainty regarding China sales and the broader decline in technology stocks could continue to weigh on risk appetite and sustain selling pressure. In the 1-3 day outlook, downside risk is more pronounced; however, the low RSI level suggests that sharp selling may be limited. If the news flow does not clarify, a sideways-to-lower trend is likely.

BABA declined sharply by more than 8% over 24 hours to 94.13, with its RSI14 at 20.4, placing it in oversold territory. The price is trading below its SMA20 (96.88) and SMA50 (102.43); MACD is in negative territory and very close to its signal line, indicating weak momentum. News regarding Nvidia's China sales is weighing on risk appetite for technology stocks; since BABA is also sensitive to the Chinese technology sector, downward pressure may persist in the short term. However, oversold conditions could set the stage for rebound buying; therefore, although the direction is downward, I am keeping confidence at a moderate level.

The news points to the impact of Nvidia's China sales and a broad decline in technology stocks, which could create short-term pressure on Chinese tech stocks such as BIDU. Technical indicators already paint a weak picture: the price is below the SMA20 and SMA50, the RSI at 42 is in neutral-to-weak territory, and the MACD is negative and very close to its signal line. The 1.4% decline over the past 24 hours also shows that selling pressure persists. However, the MACD's proximity to its signal line and the RSI's distance from oversold territory support a scenario of moderate weakness rather than a sharp selloff. For this reason, I forecast a downward but low-to-medium confidence trend over the 1-3 day outlook.

The news reflects negative sentiment toward the technology sector and could put pressure on technology-heavy stocks such as 0700.HK. However, the stock has already fallen 7.7% in 24 hours and its RSI stands at 15.9, placing it in oversold territory; this raises the likelihood of bargain-hunting in the short term. MACD is negative and the price is below SMA20/SMA50, so the technical picture is weak. The impact of the news may be partly priced in; therefore, confidence in further downside is limited. Choppy trading with limited downward pressure is expected over the next 1-3 days.