Saad Ullah
Following an unprecedented AI-driven rally, Nvidia's stock has entered a cooling-off period. The shares have been consolidating for two months with narrowing price action and declining volatility - a healthy breather before the next decisive move.
Nvidia Pauses After Explosive AI Rally
Analyst jmoneystonks recently noted that NVDA is holding gap support while three major moving averages align beneath it. The stock has also formed an inside day pattern, suggesting a potential breakout if higher lows continue.
Since late July, NVDA has traded between $172 and $185. The recent higher low at $172.12 shows buyers stepping in more aggressively. The 50-day MA at $176.56, 20-day EMA at $177.39, and 200-day EMA around $176.54 converge to provide solid support. Resistance sits at $183–$185, and a close above this zone would signal a fresh uptrend.
The RSI reads 53.3 with room to move either direction, while the MACD remains flat near zero. Volume has been elevated but steady, indicating consistent participation during the base formation.
What's Driving Nvidia Beyond Technicals
Nvidia dominates AI and GPU technology, powering data centers and cloud infrastructure globally. August earnings beat expectations, and the November 19 report will likely serve as a key catalyst. Despite broader market pressure, Nvidia's fundamentals remain solid.
What Comes Next
The consolidation appears constructive rather than a reversal. A break above $185 could reignite the rally toward previous highs, while losing $172 support would weaken the bullish case. For patient investors, this sideways action may be setting the stage for the next major move.
Saad Ullah
