NVIDIA shares attempt to bottom near key support

The tumble from a local high of $236.16 has kept NVIDIA shares under pressure through the May 26 close. However, the latest dynamics offer a glimmer of hope: sellers appear to be losing their edge just as the price nears key support. Recovering from intraday bottoms is no small feat—the stock ended the session at $214.48, having bounced back from a dip to $211.64. Although the bearish candle may look ominous, it tells only part of the story. Beneath the surface, shares held above the 61.8% Fibonacci retracement, and the long lower shadow suggests that buyers are quietly stepping in near the minimums. 

For those watching the Stochastic Oscillator, there is reason to believe in a technical rebound. Both the %K and %D lines are in oversold territory, sitting somewhere below 20. This suggests that the tank may be running on empty after several down days. That said, %K remains below %D, and no bullish crossover has materialized yet, so a confirmed reversal signal is still missing. Nevertheless, one thing is pretty clear: the downside is becoming increasingly limited, and any further decline is likely to face stiff resistance.

The Chaikin Oscillator, meanwhile, gives additional clues. It stays below zero, reflecting that distribution continues to outpace accumulation. But there is a shift worth noting—the slide is slowing, and volume patterns are stabilizing. This could be an early whisper that selling pressure is gradually easing.

Finally, take into account the fundamental backdrop, which is very much a tug-of-war. On the bullish side, NVIDIA keeps benefiting from relentless demand for artificial intelligence infrastructure, progress on the Vera and Blackwell platforms, and Jensen Huang's pledge to invest $150 billion annually in Taiwan. Add to that steady data center revenue growth, a booming AI server market, and strong hyperscaler demand. On the bearish side, worries about rising capital expenditures at AI companies, US export controls, and a probe into potential chip smuggling to China continue to weigh. So, where does this leave us? Buyers and sellers are both in the ring, and for now, the fight is far from being over. 

Ready to make a move? Here is the trading plan: 

Buy NVIDIA if the $210.00–$214.00 support zone holds, positioning for a technical rebound once the correction runs its course. Place Take profit at $226.50. Set Stop loss at $208.50.

This forecast holds true from May 27 till June 3, 2026.