Peter Smith
Nvidia's remarkable AI-driven rally has encountered its first meaningful resistance in months. The semiconductor giant, which has been a cornerstone of the artificial intelligence boom, is now facing a technical test that hasn't occurred since spring 2024. This pullback comes at a crucial juncture as investors weigh the sustainability of AI valuations against broader market conditions.
Nvidia (NVDA) Price Shows Rare Technical Weakness
The tech giant has hit an uncommon rough patch, posting four straight weekly declines for the first time since April 2024. This streak breaks what had been an impressive run of gains driven by AI enthusiasm and strong earnings performance.
Market analyst @TrendSpider notes that this decline has pushed NVDA toward a critical test of its previous all-time highs around $152.89. This level now serves as a make-or-break point that could dictate whether the stock continues its long-term upward trajectory or faces deeper consolidation.
Key NVDA Price Levels to Watch
Technical analysis reveals two pivotal support zones:
- $152.89 (Prior ATHs): This former resistance turned support represents the first major test. How the stock reacts here will likely determine if bulls can regain control or if further weakness lies ahead.
- $138.94 (50W SMA): The 50-week moving average provides the next line of defense. This deeper support level could offer buyers a second chance if the initial support fails.
The weekly MACD indicator shows signs of momentum loss, suggesting the correction may continue before any meaningful bounce occurs. This technical divergence supports the case for extended consolidation.
NVDA Outlook: Correction or Setup for a Rebound?
While the recent weakness is notable, Nvidia's fundamental position in AI and semiconductors remains strong. A successful defense of the $152–$153 area could spark a rally back toward the $167 highs and potentially beyond.
However, if selling pressure overwhelms this support, the stock may retreat to the $138–$140 zone where the 50-week moving average waits. For patient investors, such a pullback might present an attractive entry point, given Nvidia's commanding position in AI infrastructure and data center growth.
The company's leadership in GPU technology and its central role in the AI revolution suggest that any significant weakness could be viewed as a buying opportunity rather than the start of a major decline.
Peter Smith
