What triggered Nvidia shares' latest price pullback

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Nvidia slides 2.39% today to $202.75

Highlights

Nvidia announced a next-generation RTX Spark PC chip and expanded its AI memory partnership with SK Hynix, which supplies 70% of its high-bandwidth memory.
Robust financials underpin Nvidia, with record revenues, strong free cash flow, and ongoing shareholder returns despite broad market selling pressure.
Nvidia trades below key short-term averages under heavy selling, but technical indicators forecast high odds of sideways or upward movement between $197.56 and $210.53 over the next week.

Product launches and partnerships drive outlook amid sustained equity selling

Nvidia unveiled its new RTX Spark PC chip designed for desktop computers and laptops. The company initiated a multi-year technical partnership with SK Hynix to co-develop next-generation AI memory chips, with SK Hynix currently supplying about 70% of Nvidia’s high-bandwidth memory needs. Nvidia’s strong financial position was reflected in record revenues, consistent free cash flow, and the maintenance of share buybacks and dividends, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees NVIDIA holding above long-term support but highlights persistent short-term selling pressure. He notes the stock's inability to recover the 20-day and 50-day moving averages reflects weak conviction, with momentum deeply oversold and sellers dominating intraday action. Strong fundamental news and a partnership with SK Hynix have failed to lift sentiment, suggesting underlying demand is insufficient for a sustained rebound. The technical picture is mixed, as bearish sentiment prevails despite long-term bullish structures. "Until NVIDIA reclaims the $205.00–$210.53 resistance zone, downside risks remain — I recommend caution on new long positions."

Viktoras Karapetjanc, expert at Traders Union, believes the bullish structure remains intact despite recent selling. He points to Nvidia's record revenues, robust free cash flow, and innovative partnerships as reasons for constructive long-term sentiment. With the stock trading well above its 200-day average and weekly indicators pointing upward, he expects further growth ahead. The broad market offers multiple setups for accumulated gains after this corrective phase. "Given Nvidia’s strategic moves and financial strength, I expect a resumption of the uptrend towards and beyond $210.53 in the near term."

Jainam Mehta, market strategist, notes that Nvidia sits at a crossroads between short-term selling and long-term bullish momentum. He observes a divergence: oversold short-term oscillators versus a bullish MACD, signaling possible near-term volatility. The risk-reward favors tactical trades on confirmed breakouts above $210.53 or breakdowns below $197.56. "A potential breakout above resistance could trigger fast upside, but contrarians may also consider oversold bounces for tactical entries."

Oversold momentum accelerates selling despite bullish MACD divergence

Nvidia trades below its 20-day and 50-day moving averages ($218.24 and $205.00), remaining well above the 200-day at $188.90, which signals short-term selling pressure but long-term trend support. The nearest dynamic resistance is the Ichimoku Kijun level at $215.64, with the 50-day average at $205.00 acting as immediate resistance and the 200-day at $188.90 as major support.

Momentum is mixed: the Moving Average Convergence Divergence (MACD) on daily charts signals strong buy, but the Average Directional Index (ADX) reflects weak trend strength. Oscillators show oversold readings on the Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI). Bull/Bear Power (BBP) shows sellers dominate, with a deeply oversold forecast. The Awesome Oscillator also supports the current selling trend. The stock trades at $202.75 after opening with a downside gap of about $1.55, having slipped 2.39% today and currently sits in the lower part of its daily range. Intraday volatility stands at 2.57%. There is persistent pressure after the open, and intraday dynamics favor sellers. A clear divergence exists between longer-term bullish MACD and oversold, negative short-term momentum.

Previously it was reported that Nvidia's stock was expected to consolidate as technical resistance and selling pressure constrained upside, despite positive long-term fundamentals and partnerships. With fresh evidence of oversold momentum and an increasing probability of a near-term rebound, traders should now monitor the $210.53 level as a pivotal threshold for potential upside confirmation.

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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