One trading expert has warned against this Nvidia (Nasdaq: NVDA) The stock’s technical structure indicates a possible correction that could lead to the stock losing the $200 support level and falling toward $160.
It is worth noting that as of the time of writing, NVDA shares were valued at $215, ending the last session down about 2%, while NVDA shares were valued at $215. stock It’s still up 14% year-to-date.
The bearish outlook comes despite Nvidia once again beating earnings expectations, as the market appears to have largely digested the strong results during the stock’s rally in recent weeks.
According to A TradingShot Joint analysis in TradingView mail On May 23, Nvidia often rallies before earnings Investors Responding favorably to AI supply chain-related corporate results, leaving little room for further upside immediately after earnings.
The analysis indicated that Nvidia is trading on the weekly Relative Strength Index (RSI) The setup is similar to early November 2024, before the stock saw a sharp decline.
Meanwhile, the stock formed another “higher tops” structure near the top of the uptrend line, the pattern that preceded the previous sharp decline.
Based on the current structure, the decline could extend into late July 2026, with Nvidia potentially falling towards 100 a week. Moving average (Master’s). This level served as strong support during the 2025 correction before the stock resumed its broader uptrend.
The analysis predicts that a move towards $160 could represent key medium-term support and a potential return area for investors if the historical pattern is repeated.
However, weekly RSI support near 35.50 remains critical, with a break below this level potentially opening the door to a deeper correction.
While Nvidia’s long-term outlook remains supported by strong demand for AI, analysis suggests the stock could enter a period of extreme volatility following its extended rally above $220.
Nvidia’s huge profits
Despite the bearish outlook, Nvidia had another strong quarter, posting record fiscal first-quarter 2027 revenue of $81.6 billion, up 85% year over year and 20% from the previous quarter, driven largely by its AI-focused data center business, which generated revenue of $75.2 billion.
Adjusted earnings per share were $1.87, beating estimates by $1.76, while free cash flow reached a record high of $49 billion.
Nvidia also raised its quarterly dividend to $0.25 per share and approved an additional $80 billion stock buyback program.
For the second quarter of fiscal 2027, the company expects revenue to be about $91 billion, above Wall Street’s forecast of $87 billion.
However, the stock fell after earnings in a classic “sell the news” reaction, pulling back from recent highs near $236.
