New technical analysis Nvidia (Nasdaq: NVDA) suggests stock It may be heading towards a major correction, as forecasts point to a possible drop to $110.
To this end, ideas were previously exchanged TradingShot In a TradingView mail On April 2, he highlighted that Nvidia had recently tested its 50-period weekly moving average (Master’s), which is the key support level that has historically determined the strength of its long-term uptrend.
Although the price briefly fell below this level, it managed to close the monthly candle above it, indicating that the bullish structure has not been completely broken yet. However, the chart shows that this support is now under pressure.
Within Nvidia’s long-term uptrend channel, previous breakdowns below this weekly average have consistently led to deeper declines towards the rising trend line “lows”.
These pullbacks have typically unfolded during broader bearish phases, as price action gravitates toward the 200-week moving average, a level that has historically served as a cyclical bottom.
Forecasts indicated recurring downward variation on a monthly basis RSIIt’s a pattern that preceded every major decline in Nvidia’s 11-year channel. This indicates weak momentum despite rising prices, strengthening the case for a correction.
Nvidia stock targets $110
TradingShot’s The downside target is in line with the lower-upper trend line near $110, which is a key long-term support area. Although the 0.382 Fibonacci level is below this area in the current session, previous bearish phases have bottomed around it, supporting $110 as a minimum target.
Chart timing suggests this move could unfold by early September 2026 if the stock falls below the 50 weekly moving average, a shift that would likely represent a new bearish leg within the broader uptrend.
However, the monthly RSI near 42 remains an important long-term support signal, having recorded notable lows in 2018 and 2022. A return to this level may indicate the end of the correction and the start of accumulation.
A drop to $110 would mean a roughly 40% correction from the stock’s recent trading value of $177.
Nvidia stock basics
Despite technical warnings, Nvidia continues to dominate AI Semiconductors area. For example, developments focused on the Vera Rubin platform, unveiled at GTC 2026, are widely viewed as the next major driver of margin sustainability and expansion of competitive moats.
The complete architecture, featuring the Rubin GPU, new Vera CPU, and rack-scale integrated systems, targets significant gains in agent AI and inference workloads, promising up to 5x better inference performance and significant efficiency improvements over Blackwell. Production is already underway, with the super-expansionists preparing deployments for later in 2026.
Additional ancillary factors include HBM’s supply chain diversification and selective introduction into the Chinese market, both of which help mitigate execution risk and support the long-term vision.
Analysts largely view the current consolidation in Nvidia stock as a healthy pause, which could pave the way for an upside with Rubin bullish and the first quarter earnings report on May 20, 2026 providing new execution updates.
