Stock of the day: Nvidia

Today, we turn our attention to NVIDIA, which experienced a sharp collapse following the DeepSeek AI news over the weekend. The stock faced an aggressive sell-off as investors reacted impulsively to the threat of heightened AI competition. However, Monday brought a reversal attempt, suggesting that traders are now reassessing NVIDIA’s long-term prospects with a more measured approach.

Instead of reacting immediately, we allowed the dust to settle, and now we can see that NVIDIA has staged a V-shaped recovery from its lows. While this rebound is encouraging, it’s important to note that the price remains below key resistance levels, which means that sellers still hold the upper hand in the mid-term.

The first significant test lies at the $130 horizontal resistance (marked in yellow). As long as NVIDIA remains below this level, bears maintain control. However, a daily close above $130, followed by a move back above the black uptrend line, would confirm a proper buy signal, signaling that the stock is regaining its bullish momentum.

Beyond that, the next major hurdle is at $150 (marked in blue), a key long-term resistance. A breakout above yellow resistance ($130) would set up a long opportunity with a target at the $150 level.

On the bearish side, if NVIDIA struggles at $130 and forms a bearish price action pattern—such as a shooting star or a bearish engulfing candle—it would indicate renewed selling pressure and provide a short-selling opportunity.

For now, NVIDIA sits at a critical juncture, and today’s price action will provide important clues about whether this rebound is sustainable or just a temporary reaction before further downside.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-nvidia-16