Nvidia stock drops 1.23% as bearish momentum persists and sellers dominate short-term trading

Traders Union
All News
Financial News
Nvidia slides 1.23% to $172.06 today

Highlights

Nvidia faces challenges in China’s data center market due to US-China restrictions, while pursuing major AI investments like a $2 billion CoreWeave commitment.
Ongoing industry demand for AI hardware and maintenance of trust bolster Nvidia’s position, as both it and OpenAI deny partnership tensions around a reported $20 billion stake.
NVDA trades at $172.06, below MA-20 ($184.68) and MA-50 ($183.51) but above MA-200 ($169.24), with strong short-term bearish momentum and oversold technical signals.

Ongoing headwinds offset by AI investments and resilient market demand

Nvidia's recent performance reflects ongoing company initiatives and operational headwinds. The company has confirmed challenges in competing in China’s data center market due to US-China restrictions, alongside major investments such as a $2 billion commitment to CoreWeave for AI infrastructure and reported negotiations around a $20 billion stake in OpenAI, though both Nvidia and OpenAI have denied any partnership strain. Robust demand for AI hardware and ongoing industry trust remain supportive secondary factors.

Oversold technical signals as resistance holds and momentum wanes

The nearest dynamic resistance is defined by the Ichimoku Kijun at $182.78, with MA-200 at $169.24 acting as dynamic support; the absence of a death or golden cross confirms there is no major long-term trend signal triggered at this time. Momentum signals are weak, with the MACD on D1 showing a neutral picture and the ADX indicating a lack of strong directional movement. Oscillator readings reflect clear oversold conditions: RSI sits at 34.45, Stochastic RSI is fully oversold, and CCI is at -215.98. Sellers dominate short-term action according to Bull/Bear Power, which is firmly in the oversold range.

Further downside likely as bullish reversal faces major resistance

In the upcoming five trading days, the expected price range for NVDA is $169.80 to $172.90, representing a typical volatility band relative to current levels. The probability of a price increase is very low (less than 20%), so further declines are likely. The baseline scenario calls for price stabilization in a narrow, sideways corridor just above $170, while a sustained move above the Ichimoku Kijun and MA-50 ($182.78–$183.51) would be needed to spark a bullish recovery. A bearish break below the MA-200 ($169.24) would suggest additional downside risk.

Viktoras Karapetjanc, Traders Union expert, sees ongoing macro and regulatory pressures influencing Nvidia’s stock, but notes that strong structural demand for AI infrastructure continues to underpin long-term prospects. He believes that despite medium-term technical weakness and China-related headwinds, the fundamental outlook remains positive as long as price holds above the MA-200 at $169.24. For now, Karapetjanc expects stabilization above this key level, with any recovery to depend on renewed momentum and clearing resistance near $182.78–$183.51. "I remain constructive on Nvidia’s long-term story, as robust AI demand and industry trust are likely to support a stronger move once current headwinds subside."

Last time, analysts noted that Nvidia remains in a corrective phase within a long-term uptrend, trading below key moving averages and facing resistance near the $185–190 zone with a daily RSI in the low-40s indicating there is still room for further downside. Immediate support is seen at $170, with additional support at $164–165, while the stock is expected to remain range-bound ahead of earnings as investors await a clear catalyst.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.