NVIDIA correction unlocks buying opportunities

NVIDIA stock (NVDA) has entered a technical correction phase, as clearly seen in its price action in recent days. The previous session's close at $180.08 was accompanied by a candlestick with a pronounced upper wick, indicating significant resistance around $184. This signals a possible exhaustion of the bullish momentum that has dominated since early September.

Technical indicators confirm that the uptrend is weakening. On October 13, the Stochastic Oscillator showed a bearish divergence between the %K and %D lines, increasing short-term downward pressure. The RSI painted a similar picture, declining to 51 and exiting overbought territory. This confirms a technical correction after the recent high. The Chaikin Oscillator shows the clearest sell signal, with its negative values indicating the prevalence of sales volumes in recent sessions.

Fundamental factors also point to a correction. Escalating trade tensions between the United States and China have a significant negative impact on the whole tech sector, especially on firms that rely heavily on global supply chains. Further weighing on investor sentiment is the increasingly competitive environment, with AMD and Oracle's partnership to create a large-scale AI supercluster potentially challenging NVIDIA's market share.

Given the combination of technical signals pointing to a continued correction and persistent fundamental risks, the current price decline appears justified. However, there is a potential for a recovery in the medium term, taking into account the company's steady business expansion in the AI segment. This provides an opportunity to establish a long position during the current correction.

Pay attention to the following trading plan:

Buy NVDA during a correction within the $180–$178 range. Take profit: $188.50. Stop loss: $175.80.

The forecast can be materialized between October 15 and October 22, 2025.