NVDA remains range-bound as heavy seller momentum dominates intraday

Traders Union
All News
Stocks
Nvidia down 0.67% as DOJ investigates

Highlights

The US Department of Justice is investigating Nvidia's $12.9 billion planned acquisition of Hugging Face, adding regulatory uncertainty to its AI expansion.
Nvidia has deepened its AI ecosystem reach through expanded Oracle partnerships and a $3 billion equity commitment to Meta Platforms.
Nvidia stock closed at $213.94, trading below key moving averages amid oversold technical indicators with a projected range of $209.48 to $218.11.

Regulatory scrutiny intensifies as Nvidia expands AI sector partnerships

The most significant recent development is the U.S. Department of Justice's investigation into Nvidia's planned $12.9 billion acquisition of Hugging Face, raising regulatory uncertainties around its ability to expand AI market control, according to Seeking Alpha. Nvidia's expanded collaboration with Oracle aims to extend AI infrastructure across several sectors through the use of Vera Rubin GPUs and CPUs, as reported by Yahoo Finance. Additionally, the company has committed $3 billion in equity to Meta Platforms, further deepening its ties within the AI ecosystem, as noted by Techtimes.

Overextended selling momentum as technical barriers cap recovery

NVDA is trading below its MA-20 and MA-50 on the hourly chart, with these moving average crossovers indicating downward pressure in the short and medium term. The price remains above the longer-term MA-200, while the Ichimoku Kijun line at $215.4 is acting as immediate resistance. Momentum indicators are weak: MACD is Neutral, ADX points to a sell bias, and oscillators including RSI at 39.43 (Sell), Stochastic RSI, and CCI all confirm the stock is in oversold territory. Both Bull/Bear Power and the Awesome Oscillator signal heavy selling momentum intraday.

Rangebound outlook likely as downside risks outweigh bullish triggers

In the short term, NVDA is expected to trade within a range of $209.48 to $218.11, consistent with its current volatility band. Model probabilities suggest a 25% chance of upward movement and a 75% likelihood of continued downside. The baseline scenario favors sideways consolidation. A bullish outcome would depend on NVDA moving and closing above the immediate resistance at $215.4, while a decisive break below near-term support could trigger further declines.

Anton Kharitonov, analyst at Traders Union, sees Nvidia facing heightened regulatory pressure after the DOJ launched a probe into its Hugging Face acquisition. He notes that, despite solid long-term partnerships with Oracle and Meta, short-term technicals show weak momentum and dominant selling pressure. The price is stuck below key moving averages with limited upside probabilities. "Until NVDA regains strength above $215.4, I remain cautious and do not anticipate a bullish turn."

Earlier, analysts noted that escalating regulatory scrutiny and technical signals had tilted Nvidia’s outlook toward caution, with downside risks dominating the near term. The present update adds fresh momentum data and highlights a prevailing scenario of continued range-bound trading, underscoring $215.4 as the key resistance level that could define the next directional move.

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.