NVIDIA stock set to bottom out as bears loosen their grip

Following a recent dip, NVIDIA shares continue to consolidate within a narrow range. Market players are now sitting on the fence, waiting for a new factor to set the price direction.

The technical picture is mixed and indecisive. Converging Bollinger Bands clearly indicate reduced volatility and a buildup to the next significant move. The price is hanging on by a thread near the channel’s lower boundary, reflecting the fragile balance between buyers and sellers.

Bearish momentum, despite remaining dominant, is currently showing signs of fatigue. The Stochastic Indicator confirms this dynamic, with its %K line at 31 and the %D one at 38 approaching oversold territory, hinting at a potential short-lived technical rebound. The Chaikin Oscillator is still drifting in the negative zone but has risen over the past session. This does not make an upward reversal a sure thing; however, it could be a sign of waning selling momentum.

NVIDIA’s fundamentals are also rather ambiguous. On the one hand, the company maintains its leadership in the industry, bolstered by Bank of America’s optimistic reports for 2026. On the other one, Chinese developers are breathing down NVIDIA's neck, creating long-term challenges. Current market sentiment, stressed out by the Fed’s monetary trajectory, diminishes risk appetite. The tech sector is no exception.

With the price not able to pierce through the lower Bollinger Band at $172.42, which is acting as strong support, and a potential bullish signal on the Stochastic Indicator, the stage is set for a local rebound. However, a confident upward reversal will require a break above the $181.20 level and increased trading volumes.

Take a look at the trading strategy down below:

Buy NVIDIA’s stock during a rebound from current levels while remaining vigilant. Place Take profit 1 at $181.20, Take profit 2 at $185.20, and Stop loss at $172.00.

The forecast is valid from December 17 till December 24, 2025.