Welcome back to Apple Tree 360, where we decode the markets with clean, actionable insights. Today, we’re diving deep into Nvidia’s recent price action, following a major flag pattern breakdown and a stunning 50% correction. Is it time to buy the dip or brace for further downside? Let’s break it down.
🔍 Quick Take
- Stock: Nvidia (NVDA)
- Price Range: From ~$153 to ~$86 — nearly a 44% drop
- Current Bias: Bearish (short-term), Potentially Bullish (long-term)
- Key Levels: $110 & $115 (short-term targets), $75 (support zone)
📉 Recent Flag Pattern Breakdown — What Happened?
In our latest technical review, Last Wednesday saw a gap-down, and Thursday followed through with more selling pressure. Nvidia has now corrected nearly 44% from its high at $153, bringing it close to long-term support levels.
This pattern isn’t just technical noise — it’s signaling potential weakness in momentum and traders need to be cautious before jumping back in.
🗓 Weekly Chart: A Glimmer of Hope for Long-Term Investors?
Switching to the weekly timeframe, there’s a second major support level dating back to March of last year. This could act as a springboard for a reversal — but only if the trend line breaks upwards.
Right now, the chart remains in a clear downtrend. Until we break above key resistance and reclaim levels like $110 or $115 with conviction, this remains a wait-and-watch zone for long-term buyers.
📰 Macro Drivers to Watch
Nvidia is no stranger to headline risk. Tariff news, regulatory shifts, or developments in China relations could move the needle significantly. Any positive headlines could cause a short-term bounce, especially if they come near those critical support zones.
🔔 Actionable Tip: Keep an eye on market news — a surprise announcement could be the catalyst for a breakout or breakdown.
📊 The Game Plan
✅ Action Items:
- Follow up on the downside levels — could $75 break?
- Monitor for news events that could change sentiment.
- Watch for breakouts above $110/$115 — that’s when the real momentum might begin.
🎯 Final Thoughts
While Nvidia’s chart looks bruised, long-term investors should be on alert, not discouraged. With support levels in play and a history of strong rebounds, NVDA may offer great risk-reward — but only after confirmation.
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Stay smart. Stay prepared. See you in the next update.
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