Saad Ullah
NVIDIA's been getting hammered for weeks, but something interesting just happened. The stock's sitting at $169.96, and while that might not look exciting, there's a bullish divergence forming on the Williams % Range that's caught traders' attention. This is exactly the kind of setup that can turn things around fast.
What the Chart Is Telling Us
The daily chart paints a clear picture. NVDA has two major gaps to work with - the immediate upside target at $173.15 that everyone's watching, and a downside gap at $160.22 if things go south. Above that, there's a bigger resistance zone between $183-$184.50 where the stock previously topped out.
Here's what makes this interesting: while price has been making lower lows, the momentum indicator has been quietly turning higher. That's textbook bullish divergence - the kind of signal that suggests the selling pressure might be running out of steam. Trader @Jake__Wujastyk spotted this divergence early, though he's warned about the risks of holding short-dated options in this volatility.
Why This Could Actually Work
The technical divergence is just part of the story. NVIDIA's still the king of AI infrastructure, and these pullbacks tend to attract buyers who see value. The market's also getting tired of the relentless selling - sometimes stocks just need to catch their breath before the next move higher.
The short-term downward channel has already been broken, which adds weight to the rebound thesis. If momentum continues building, that $173.15 gap becomes the obvious first target.
It's pretty straightforward from here. If NVDA can punch through and close that gap at $173.15, momentum traders will likely push it toward the $183-$184.50 resistance zone. But if it fails to hold current levels, that lower gap support at $160.22 comes back into play fast.
The Williams % Range divergence gives bulls some hope, but NVIDIA's still in a volatile phase. The $173.15 level will separate the real buyers from the noise. Get above it with conviction, and this rebound story gets a lot more interesting.
Saad Ullah
