Peter Smith
NVIDIA is showing signs of stabilization after holding a critical support area, with the broader technical structure remaining intact despite the recent pullback. Analyst MentoviaX noted that NVDA has maintained long-term support, and the next phase could involve a move toward the $200 level.
The stock pulled back from recent highs and tested a horizontal support zone around the mid-$160s - a level that has previously acted as a reaction area where buyers consistently stepped in. The bounce from this area suggests demand is still present, preventing a deeper breakdown and keeping the structure intact.
Long-term support has held, and the next phase could involve a move higher toward $200.
NVDA Price Action: Pullback, Not a Breakdown
Despite the decline from higher levels, the overall structure has not shifted into a confirmed downtrend. The move appears corrective, with price stabilizing rather than accelerating lower. This type of behavior is consistent with broader NVDA technical setups, where consolidation near support often precedes a larger directional move.
Key observations from the current chart setup:
- Support in the mid-$160s has held across multiple tests
- Buyers have emerged at this level, preventing a deeper breakdown
- Price is compressing rather than trending lower
- The broader bullish structure remains intact
Price compression around key levels can signal an upcoming expansion phase.
NVDA Targets $200 if Support Zone Holds
With the mid-$160s holding, attention shifts toward previously tested highs. A recovery toward the \$200 region would represent a continuation of the broader bullish structure rather than a new breakout - simply a return to levels the stock has already visited.
Similar setups in NVDA have shown that maintaining support zones often allows price to rebuild momentum before advancing toward higher targets. The current phase looks like exactly that kind of base-building process.
Maintaining support zones often allows price to rebuild momentum before advancing toward higher targets.
What Could Disrupt the NVDA Setup
The current setup depends entirely on holding the established support zone. A sustained move below the mid-$160s would weaken the structure and shift the outlook - something worth watching closely if broader market conditions deteriorate.
For now, NVDA remains in a stabilization phase, with buyers still active at key levels. If momentum builds from this base, a push toward $200 and potentially higher remains a realistic scenario within the existing technical framework.
Peter Smith
