Saad Ullah
NVIDIA's stock is facing some technical headwinds as traders watch key support levels being tested. The AI chip giant, while maintaining strong fundamentals in the artificial intelligence boom, is showing concerning chart patterns that suggest the stock might be due for a pullback. Technical analysis is pointing to some warning signs that could impact the near-term price action.
NVDA Price Action Signals Bearish Continuation
NVIDIA closed at $169.78, dropping 0.58% for the day. The daily chart shows a significant island top pattern, which traders often see as a sign that the stock might reverse course. After getting pushed back several times from the $175–177 area, sellers have managed to drive the price down to a crucial support zone around $169–171, which has many wondering if more drops are coming.
Trader @colin_gladman recently shared his analysis showing that these repeated bounces off support levels make the bearish case stronger. His chart suggests NVDA could break down even more, with heavy selling volume during the recent drops backing up this weakness.
The technical picture tells a clear story:
- The stock is trading below its short-term moving averages, showing bearish momentum
- Selling pressure has been stronger than buying interest lately
- The key support area is starting to crack, with prices closing below important levels
NVDA Price Outlook: Key Levels to Watch
Immediate Support: $169–171 (currently being tested)
Next Supports: $164 and $148.87 if selling continues
Resistance to Reclaim: $175–177 zone needed to turn bullish again
Unless buyers can quickly push the stock back above those resistance levels, the chart suggests NVDA might head lower. The volume analysis also shows that stronger buying interest doesn't really kick in until around $148–150, which could mean there's room to fall.
NVIDIA's short-term chart setup looks bearish right now, with the island top pattern and failing support levels raising red flags. While the company's long-term AI story remains strong, traders are keeping a close eye on these technical warning signs that point to potential weakness ahead.
Saad Ullah
