Persistent weakness below key averages sends Nvidia stock down 2.47%

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Nvidia slides 2.47% after partnerships

Highlights

Nvidia formed strategic alliances with leading South Korean tech firms to expand its AI, semiconductor, and data center footprint in Asia.
A new collaboration with SK Telecom targets a gigawatt-scale AI data center by 2027, strengthening Nvidia's global position in AI infrastructure.
Technicals show prevailing bearish momentum with strong selling pressure, favoring a $193.81–$212.33 range and potential downside continuation.

Broader selling pressure persists despite South Korea partnership deals

Nvidia announced a series of strategic partnerships with major South Korean technology groups, including SK Hynix, Naver, Doosan Group, and SK Telecom, to expand its artificial intelligence ecosystem across critical supply chains and infrastructure. These agreements increase Nvidia's integration within the South Korean semiconductor and AI markets through joint projects in memory chips, robotics, cloud computing, and data center development. The partnership with SK Telecom specifically covers plans for a gigawatt-scale AI data center set to launch in 2027, further deepening the company's global footprint in large-scale AI deployments. While these developments broaden Nvidia's industry reach and future growth avenues, price action has remained under broader selling pressure.

Bearish momentum as NVDA tests resistance amid oversold signals

NVDA/USD is trading below the MA-20 at $215.03 and MA-50 at $216.47 on the H4 timeframe, while remaining above the daily MA-200 at $188.74. The Ichimoku Kijun level at $218.29 represents the nearest resistance, with the short-term technical ceiling defined there. Momentum indicators are negative, as the MACD is on a Sell signal, the ADX stays neutral, and the RSI stands at 41.06. Both CCI and BBP show oversold readings, as does the Stoch RSI, highlighting intraday seller dominance. The Awesome Oscillator confirms prevailing bearish pressure, with session action closing near the low and no bullish divergence detected.

Consolidation expected as downside risk remains elevated

In the near term, NVDA/USD is likely to consolidate between $193.81 and $212.33, representing a typical volatility band relative to current levels. There is a 62% probability of downside continuation, while an upward reversal has a lower likelihood at 38%. The baseline case favors a broad sideways consolidation, but a recovery would require prices to reclaim levels above immediate resistance. Should the price breach $193.81, it could open the door to further downside risk.

Anton Kharitonov, analyst at Traders Union, sees that Nvidia’s recent strategic agreements with South Korean tech firms signal the company’s intent to deepen its presence in the global AI ecosystem. However, he believes technical evidence dominates in the short term, with selling pressure confirmed by oversold readings and failure to retake key resistances. The current backdrop points to sideways consolidation or further downside risk if $193.81 is breached. "I’m waiting for price to reclaim $218.29 before considering a tactical long — until then, the risk of further weakness persists."

Earlier, analysts noted that Nvidia's strong fundamentals and expanding AI partnerships were supporting a positive outlook despite periods of market consolidation. However, current technical weakness and sustained selling pressure suggest traders should closely monitor the $193.81 level, as a decisive breach could accelerate downside momentum in the near term.

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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