Nvidia's Price Approaches the $110 Mark

The stock has dropped more than 11% over the past five trading sessions due to newly imposed tariffs on Taiwanese semiconductors (which could increase Nvidia's costs) and growing concerns over DeepSeek's advanced AI model, which has intensified competition in the sector. Additionally, rising global trade tensions have led investors to lose confidence in Nvidia's future market outlook. As one of the most influential technology companies worldwide, a potential slowdown in global economic growth could negatively impact Nvidia's sales and revenue projections.

Accelerated Downtrend
Nvidia has already undergone a significant decline from the $150 price zone and is now approaching the key support level at $114 per share. So far, the sharp bearish moves have largely been accompanied by price gaps, and no clear trend-defining structure has emerged to establish a decisive bearish bias. This suggests that, in the long run, investors should watch for potential bullish corrections, given the speed of the recent sell-off.

RSI Indicator
The RSI line has consistently declined and is now approaching the oversold zone near the 30 level. This signals a strong imbalance between buying and selling pressure, which could increase the likelihood of short-term upward corrections in the stock price.

Key Levels
$130: The most significant resistance level, representing a neutral price zone over the past few months. A return to this level could reinforce a sideways market outlook in the coming weeks.
$114: A critical support level, aligning with the 61.8% Fibonacci retracement barrier. Sustained movements below this level could reinforce the bearish perspective and trigger a more extended selling wave.

By Julian Pineda, CFA - Market Analyst