Usman Salis
Nvidia continues demonstrating remarkable strength as technical patterns and market sentiment align in favor of further gains. This observation hints at something many traders are beginning to notice—NVDA's next major milestone might arrive sooner than expected.
Technical Picture Shows Clear Momentum
Recent analysis from TrendSpider captured the mood perfectly: "Objects in mirror may be closer than they appear." The weekly chart tells a compelling story. After consolidating through early 2025, Nvidia has broken into a decisive uptrend with strong green candles pushing beyond $190. Currently trading around $192.50, the stock appears poised to test the psychologically significant $205 level, which would edge the company closer to a $5 trillion valuation.
What stands out is the volume concentration between $160 and $170, revealing where institutional money stepped in during weakness. The RSI reading of 93.9 shows overbought territory, but in strong trending markets, this often signals momentum rather than an imminent reversal. It's the kind of reading you see when conviction runs high.
The derivatives market paints an even more interesting picture. Large call sweeps have been flooding in, with some notable examples:
- $130 calls for January 2025 attracting nearly $1 million in premium
- $195-$200 calls for October and November 2025 seeing orders above $400K each
- Multiple strikes showing aggressive bullish positioning across different timeframes
These aren't retail lottery tickets. The size and sophistication of these trades suggest institutional players are positioning for substantial upside, not just hoping for it.
What's Driving This Confidence
Three fundamental factors underpin the bullish setup. First, Nvidia remains the undisputed leader in AI infrastructure, supplying the GPUs that power everything from ChatGPT to autonomous systems. Demand from hyperscalers shows no signs of slowing.
Second, the numbers back it up. Recent earnings have blown past expectations, reinforcing Nvidia's dominance not just in AI but across gaming and data center segments. The company isn't just riding a wave—it's creating one.
Third, there's a psychological element at play. Nvidia has become shorthand for AI growth itself. When institutions want exposure to artificial intelligence, NVDA is often their first call. This creates a self-reinforcing dynamic where success breeds more investment, which enables more success.
A sustained move above $200 would likely trigger technical buying and bring the $205-$210 zone into play. If that level holds, Nvidia could cement itself in rare territory: a company valued at $5 trillion, joining an exclusive club that reflects not just size but market significance.
The setup looks strong. Whether it plays out depends on execution, market conditions, and continued demand for AI infrastructure. But right now, the technical, fundamental, and sentiment pieces are all pointing in the same direction.
Usman Salis
