Nvidia: Is a Reversal Coming or More Downside Ahead?

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.


👉 Like what you read?


Stay smart. Stay prepared. See you in the next update.


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