Usman Salis
NVIDIA (NVDA) stock finds itself at a critical juncture, drawing considerable attention from retail and institutional investors alike. Following several weeks of consolidation within a wedge formation, NVDA is now challenging the key $171 resistance zone. A clean break above this level could ignite a fresh bullish rally, while rejection might extend the current sideways trading pattern.
Technical Analysis Overview
Trader @TrendSpider highlighted this technical setup as particularly noteworthy, noting that the 30-minute chart reveals a descending wedge pattern that has successfully broken to the upside, with NVDA currently trading near the volume Point of Control (PoC) at $169.94.
This positioning suggests the stock is gathering momentum for its next significant directional move.
- Support: The $165 level continues to act as a reliable foundation, having held through multiple tests and providing solid rebounds.
- Immediate Resistance: The $171-$172 zone represents the primary obstacle, serving as the gateway to higher prices.
- Upside Targets: Breaking through $171 resistance opens pathways to $175 initially, with $180 as the next major target.
- Downside Risk: Loss of the $165 support could lead to a pullback toward $160.
Volume analysis shows concentrated activity between $165-$170, suggesting that a breakout above $171 could unleash substantial buying pressure and drive prices significantly higher.
Fundamental Drivers
NVIDIA's business fundamentals remain robust, supported by persistent demand for AI infrastructure and expanding data center investments. These factors continue to underpin long-term investor confidence. Near-term price action may be influenced by upcoming macroeconomic data releases and quarterly earnings reports, which could introduce additional volatility.
Price Forecast
Should NVDA successfully breach the $171 resistance, price targets of $175 and $180 become realistic objectives. Conversely, rejection at current levels would likely extend the consolidation phase, with $165 serving as the key support to monitor for any potential weakness.
Usman Salis
