Peter Smith
⬤ Nvidia shares are sitting at a critical juncture as a textbook head and shoulders top pattern emerges on the chart. The stock has formed three distinct peaks—with the middle one clearly higher than the shoulders on either side—and now price is sliding back toward that all-important neckline.
⬤ What makes this setup particularly interesting is where the neckline sits. It's lining up almost perfectly with rising trend support and a cluster of major moving averages, turning this zone into a battleground for bulls and bears. NVDA is basically testing whether months of uptrend support will hold or crack under pressure.
⬤ If the neckline breaks convincingly to the downside, the head and shoulders pattern completes and typically signals more weakness ahead. But here's the thing—these patterns don't always play out. If Nvidia can reclaim that neckline and push higher, the entire bearish setup gets thrown out the window as a failed pattern.
⬤ The next few sessions are going to be telling. NVDA is at one of those technical inflection points where the price action over the coming days could set the tone for the next major move—whether that's a breakdown or a bounce that invalidates the whole pattern.
Peter Smith
