Saad Ullah
Nvidia shares are compressing after a strong upward move, forming a continuation pattern that keeps the broader bullish structure intact. The current setup resembles a classic bull flag, with price action suggesting a possible expansion toward the $220 level - a view shared by analyst Banana3, who flagged the developing structure on the chart.
The pattern forming after the $215B revenue rally
The chart shows a clear impulsive move higher - the defining feature of a bull flag.
Following that rally, price transitions into a controlled pullback, forming a downward-sloping channel bounded by lower highs and relatively stable support.
Price action is consolidating rather than reversing. The prior trend remains upward, and this phase appears to be a pause where momentum resets before a potential continuation.
Similar behavior has been observed previously, where price action stalled beneath resistance before attempting another move higher - a pattern detailed in Nvidia Hits $215B in Revenue as NVDA Shares Test $197 Resistance.
Where buyers continue to defend NVDA support
A key feature of the chart is the horizontal support zone that has held multiple times during the pullback. Each dip into this area has been met with buying interest, preventing deeper declines and maintaining structural integrity.
At the same time, the descending resistance line continues to cap rallies, creating a tightening range. This interaction between support and resistance defines the flag structure and signals a market that is compressing rather than breaking down.
Price remains above the rising long-term moving average, reinforcing that the broader trend has not been invalidated despite short-term weakness.
A similar setup is described in NVDA Compressed Between Key Moving Averages, Breakout Targets $229, where consolidation near support precedes directional expansion.
Why $220 remains the upside target for NVDA
The $220 level stands out as the projected target, aligning with prior highs and the measured move typical of a bull flag continuation. This level also reflects a natural resistance zone where price is expected to react.
For the bullish scenario to play out, price must break above the descending resistance line and reclaim higher ground. Until that happens, the structure remains a developing pattern rather than a confirmed breakout. The importance of reclaiming resistance is also highlighted in NVDA Price Outlook: Nvidia Eyes Reversal as $170 Support Holds, $188 Breakout in Focus.
Saad Ullah
