Nvidia shares dip amid rising selling pressure

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Nvidia slides 2.33% today to $209.67

Highlights

Nvidia posted robust quarterly results on continued AI chip demand, boosting revenue, profit, and cash flow.
The company returned $20 billion to shareholders and approved an $80 billion expansion to its buyback program.
Shares face short-term selling pressure but remain in a medium-term uptrend, with a 75% probability of consolidating between $206.62 and $214.25 over the next week.

Shareholder returns climb amid robust AI-driven earnings, but selling persists

Nvidia reported another strong earnings quarter driven by sustained demand for its chips, particularly in artificial intelligence applications. The company returned approximately $20 billion to shareholders via dividends and share repurchases and authorized an additional $80 billion for future share buybacks. Strategic investments included a $2 billion commitment to Marvell aimed at enhancing AI chip integration, while revenue, profits, and cash flow all increased according to management, who signaled ongoing confidence in performance, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes persistent short-term selling despite strong fundamentals. He sees the price trading below the 20-day moving average and recent downside gaps as warning signs. Buybacks and strong earnings bolster the long-term view but do not remove the near-term risk. Oscillators signal oversold, but intraday action shows sellers firmly in control. "Even with robust cash returns and AI tailwinds, the immediate bias leans toward caution until technical confirmation of renewed buying emerges," Kharitonov concludes.

Viktoras Karapetjanc, expert at Traders Union, sees Nvidia’s strong earnings and major capital returns as evidence of lasting industry leadership. The expert believes that shareholder-focused initiatives and new AI investments reinforce medium- and long-term momentum. Price consolidation is healthy after significant gains, but the bullish structure remains intact with indicators favoring upside. "I expect further growth as Nvidia’s fundamentals and capital allocation set the stage for higher valuations over time," says Karapetjanc.

Parshwa Turakhiya, analyst, observes a mixed technical picture with short-term pressure but medium-term strength. He highlights that the oversold signals on Stochastic RSI and CCI suggest tactical rebound opportunities. Recent news flow supports sentiment, but momentum is uneven, so patience is key. "Traders can look to capitalize on short-term swings between $206.62 and $214.25, but should stay flexible as volatility persists," Turakhiya advises.

Mixed momentum and oversold levels reinforce short-term weakness after gap lower

Nvidia is trading below its 20-day moving average (MA-20 at $214.61), but remains above both the medium-term MA-50 ($197.48) and the long-term MA-200 ($187.19). This setup signals short-term pressure from sellers, with medium- and longer-term trends still tilted toward strength; the nearest dynamic resistance is the Ichimoku Kijun at $215.64, while MA-50 provides support near $197.48. Momentum shows a mixed picture: the Moving Average Convergence Divergence (MACD) on D1 is still set to "Strong Buy", but the Average Directional Index (ADX) is moderate and less directional. The Relative Strength Index (RSI) is neutral-bullish at 53.13, while the Stochastic RSI and Commodity Channel Index (CCI) read oversold, suggesting a potential for short-term rebound. Bull/Bear Power (BBP) is positive at 0.50, indicating buyers currently dominate, but the oversold forecast underlines near-term caution for new longs. Daily action shows the stock dropped $5.01 or 2.33% and opened with a downside gap of about $2.22, with the price now near the session low and intraday volatility at 1.46%. Sellers are in control after the open, and intraday weakness matches the short-term pressure seen in momentum and oscillators.

Earlier, analysts noted that Nvidia’s stock was trading under short-term pressure despite ongoing shareholder returns and major international expansion, with caution advised over potential breakout or correction risks. With the current setup also reflecting consolidation within a defined trading band and a high probability of near-term upside, traders should watch for a sustained move above $214.25 as an early signal for a bullish reversal.

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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