NVIDIA shares will face increasing pressure near 152.6

NVIDIA shares continue to rise after a short period of consolidation near the 143 level. Yesterday, the stock hit the highest peak since January and was just 3.3% below its all-time high of 152.6. It is worth noting that there has been no correction since the start of summer, and a move toward the 152.6 level could trigger a pullback. Profit-taking by the bulls may push NVIDIA’s price down toward 143 and 137.

The rally may be nearing its end, and investors should consider closing long positions—a view supported by actions from the company’s management. Last week NVIDIA CEO Jensen Huang sold 100,000 shares of the chipmaker's stock, worth $14.4 million. According to US Securities and Exchange Commission’s (SEC) filings, he plans to sell an additional 6 million shares by the end of 2025.

Mark Stevens of NVIDIA's Board of Directors has also decided to reduce his stake in the company. Last week, he sold over 600,000 shares for approximately $88 million, with plans to sell an additional 4 million shares this year. Although such moves by NVIDIA's management do not necessarily indicate any problems within the company, they clearly highlight the attractiveness of current prices for profit-taking.

Another factor in favor of a near-term correction for NVIDIA is recent news from China. According to the South China Morning Post, the Asian country has developed the Meteor-1 chip, which outperforms all NVIDIA products except for the flagship RTX 5090. US export restrictions on chips are accelerating China's development of domestic alternatives. This could reduce NVIDIA's revenues in the local market.

A pullback from the 152.6 level could lead to a price drop to 143, and then to the 23.6% Fibonacci level (137).

Consider the following trading strategy:

Sell NVIDIA in the range of 147–153. Take profit 1 — 143. Take profit 2 — 137. Stop loss — 156.