Nvidia stock drops 3.74% as sellers overwhelm short-term technical support

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Nvidia slides 3.74% today to $171.07

Highlights

Nvidia reported record revenues and sustained high demand for H200 and advanced GPUs, underscoring its lead in the AI chip market.
Recent actions include H200 chip sales approval to select Chinese customers with a 25% export surcharge, and the acquisition of SchedMD.
Automotive revenue rose 32% year over year amid expanded partnerships with Toyota and Aurora Innovation, while Director Harvey Jones sold 250,000 shares on December 17, 2025.

Record AI demand and strategic deals offset insider selling

Nvidia remains a leader in the AI chip market with record revenues and elevated demand for its H200 and advanced GPUs. Recent corporate actions include the approval of H200 chip sales to certain Chinese customers, a 25% export surcharge, the acquisition of SchedMD, and partnerships with Mistral AI as well as expanded deals with Toyota and Aurora Innovation, driving automotive revenue up 32% year over year. Director Harvey Jones also completed an insider sale of 250,000 shares on December 17, 2025. The company continues to expand its reach through confirmed regulatory and strategic initiatives.

Bearish momentum persists as intraday oversold signals intensify

The nearest dynamic resistance is found at the Kijun level ($182.78) from Ichimoku, while the MA-200 around $156.92 acts as the primary long-term support. Momentum signals are predominantly negative on the daily timeframe: MACD shows a strong sell and ADX values remain low, indicating weak trend strength. Both RSI (37.33), Stoch RSI, and CCI point to clear oversold conditions, while BBP is deep in seller territory (oversold), confirming that sellers are firmly dominating intraday price action. The Awesome Oscillator also supports this bearish momentum; today’s session is down $6.65 or 3.74% from the previous close, with a minor opening gap and the current price near the session lows within a $170.34 – $175.44 range. Volatility is elevated, with continuous selling pressure after the open and no signs of reversal, aligning well with the momentum and oscillator readings.

Limited rebound odds as volatility shapes consolidation outlook

For the next five trading days, the expected price range is adjusted to $167.00 – $175.00 to reflect the current level and recent volatility. The probability of a price rebound is very low (less than 20%), making further decline more likely. The baseline scenario is sideways consolidation between $167.00 and $175.00, as short-term oversold signals may limit immediate downside. A bullish scenario requires a decisive break above $175.00 – $178.00, which would target resistance at $182.78, while a bearish move below $167.00 would expose the long-term support near $157.00 as the next key level.

Viktoras Karapetjanc, Traders Union expert, sees Nvidia’s long-term growth prospects intact, supported by strong AI sector fundamentals and elevated institutional demand. He believes recent regulatory approvals and high-profile partnerships confirm the company’s market leadership, despite current selling pressure and oversold technicals. Consolidation between $167.00 and $175.00 remains the base case in the near term, with any decisive breakout likely to attract renewed investor interest. "I view this period of volatility as a healthy reset, reinforcing Nvidia’s position for future upside as the sector’s structural demand remains strong."

Last time, analysts noted that Nvidia stock was consolidating in a sideways range, with support developing near the 50-day SMA and resistance at $182, while neutral momentum indicators such as RSI and MACD signaled limited directional conviction. The broader trend remains bullish above key support, but a break below current levels could trigger a move toward the 100-day SMA, whereas an upside breakout would target psychological resistance higher.

Source of Data: NVDA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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