Period: 12.08.2025 Expectation: 500 pips

NVIDIA is poised to retest trend line and 174 level

Today at 08:41 AM 19
NVIDIA is poised to retest trend line and 174 level

As the earlier forecast anticipated, NVIDIA's stocks hit $180. However, the formation of a new all-time high, coupled with overbought technical signals, caused the price to pull back to $170. A nearby 4-month uptrend line halted the decline. Yet, the lack of a swift rebound to recent highs suggests the potential for another test of the trend line, now positioned around $174.


The Stochastic Indicator's lines have crossed and turned downward, reinforcing the sell signal for NVIDIA shares. New dwindling momentum is likely to encounter resistance near the 20-day moving average, making it prudent to partially close short positions in that area. Conversely, any upward moves may be capped by the upper Bollinger band, which has settled just above $182.


NVIDIA's stock could be hit even harder by fears about chip shipments to China. The country is now demanding proof that the company's products lack location-tracking and remote-control features, while US officials are insisting on the incorporation of such measures, therefore citing national security requirements. This clash may fuel a deeper correction.


Today, NVIDIA officially stated that its chips do not have remote-control capabilities, nor does it plan to introduce such features in the H20 and H100 models, which are key products for Chinese AI developers. This stance could provoke pushback from US authorities, particularly amid stalled trade talks with the Asian country. The initial easing of export restrictions on NVIDIA products was a negotiated concession, and if discussions remain deadlocked, America may quickly reinstate the ban.



Here's a trading strategy to consider:


Sell NVIDIA at the current price. Take profit: $174. Stop loss: $184.

This content is for informational purposes only and is not intended to be investing advice.

error
More
Comments
New Popular
Send
Commenting rules