Nvidia stock trades flat after China bans RTX 5090D V2 gaming chip

Traders Union
All News
Financial News
Nvidia slips 0.58% after China ban

Highlights

China banned Nvidia's RTX 5090D V2 chip during the Trump-Xi summit, tightening regulatory pressure on U.S. semiconductor exports.
This action amplifies uncertainty for Nvidia's product launches and complicates compliance in the Chinese gaming market.
Despite mild short-term selling pressure, NVDA maintains a strong longer-term bullish trend, with high probability of consolidation between $216 and $226 in the next five sessions.

Regulatory tightening in China clouds Nvidia’s market access

China imposed a ban on Nvidia’s RTX 5090D V2 gaming chip during the Trump-Xi summit in Beijing, representing an escalation in regulatory restrictions affecting U.S. semiconductor providers and narrowing Nvidia’s access to the Chinese gaming market. The regulatory action increases uncertainty around broader segments of the company’s product line, complicating sales channels and regulatory compliance for future launches. Broader macro factors and supply chain risks were noted in the sector, though price action has remained under broader selling pressure.

Bullish momentum persists above technical supports amid volatility

On the technical front, NVDA is currently trading above the SMA-20 at $212.34, the SMA-50 at $194.72, and the SMA-200 at $186.43. The Ichimoku Kijun support resides at $213.66. MACD and ADX on the daily chart indicate ongoing bullish momentum, while oscillators such as RSI, CCI, and Stoch RSI provide neutral to modestly overbought signals. Bull/Bear Power (BBP) flags the level as overbought, and the Awesome Oscillator gives no clear directional bias. The session opened with a modest downside gap from $222.32 to $218.66 and traded in a moderate daily range, with price near the middle of that range amid intraday volatility.

High upside probability as range-bound trade expected

Over the next five sessions, NVDA is expected to consolidate within a typical volatility band of $216 to $226. The probability of a price increase remains very high, above 80%, whereas a decline is seen as unlikely. The base case scenario is a sideways channel near current levels. A move above $226 could signal renewed upward momentum, while a drop below $213.66 may open the door to further weakness.

Anton Kharitonov, expert at Traders Union, sees short-term price action in Nvidia as constrained by China’s confirmed ban on the RTX 5090D V2 gaming chip. He notes that bullish technicals remain, but escalating regulatory pressures add uncertainty to sales and product rollout. The analyst points out that consolidation between $216 and $226 is now the base case, with risks skewed to the downside if $213.66 is breached. "Regulatory shocks out of China warrant caution here — I remain defensive until NVDA reclaims stronger momentum above $226."

Earlier, analysts noted that Nvidia's continued momentum was under scrutiny, with investors watching whether it could sustain gains amid competitive and macro headwinds. The latest regulatory developments in China add a fresh layer of uncertainty, making $226 a critical resistance level to watch as traders assess whether the stock can break higher out of its current consolidation range.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.