Should You Buy Nvidia After the Sell-Off? Expert Breakdown of NVDA’s Correction
Quick overview
- Nvidia has experienced a ~20% drawdown this month, but this is a standard correction within a long-term uptrend.
- Key support levels are identified at $177, $165, and $162, while resistance is noted at $186 and $195.
- Momentum indicators show mixed signals, with the MACD indicating bearish trends despite the EMAs remaining bullishly aligned.
- The current market sentiment suggests continued downward pressure unless Nvidia can decisively break above $195.
Nvidia’s ~20% monthly drawdown has sparked broad market panic, but technically this move is far less dramatic than it looks. The sell-off is a standard retracement within an extended parabolic advance — a long-overdue correction in a market that had been priced for endless growth. Key structural support remains lower, and current volatility profiles indicate the corrective leg is not yet complete.
Nvidia Stock Price Drops By 20 % This Month
Nvidia has retraced roughly 20% this month, sliding from its all-time high of $212 to the $170 region. Despite the magnitude of the pullback, the broader trend structure remains decisively intact. The MACD histogram has begun to roll over bearishly on the monthly timeframe, but both the MACD lines and key EMAs still maintain a bullish cross, confirming that the long-term trend bias remains upward. RSI sits in a neutral zone, offering no clear momentum skew in either direction.
From a structural standpoint, Nvidia’s next meaningful Fibonacci support aligns near the $165 level — a zone where the stock could reasonably attempt a bullish reaction and resume its primary uptrend.
Nvidia Stock Yet To Reach Significant Fib Support
If Nvidia manages to reclaim momentum and bounce, the chart presents initial Fibonacci resistance at $186, followed by a more critical barrier at $195. A decisive break above the $195 golden ratio is essential for confirming an end to the corrective phase. Failure to clear this level keeps the risk tilted toward further downside.
On the other hand, a breakdown below the 0.382 Fib support at $164 would open the door to an extension of the correction toward the 50-week EMA near $156. If that dynamic support also gives way, the next major Fibonacci demand zone lies at the $130 golden ratio, which marks a deeper structural support.
From a trend perspective, the EMAs remain bullishly aligned, reaffirming mid-term trend strength. However, momentum indicators show a contrasting picture: the MACD lines are bearishly crossed and the histogram continues to trend lower, while the RSI sits in neutral territory, offering no clear directional bias.
Nvidia Set To Continue Downward Movement
Nvidia appears positioned to extend its downward movement. The 0.382 Fib level near $186 is reinforced by the 50-day EMA, creating a confluence of resistance on the daily chart. To the downside, the 200-day EMA aligns with the 0.382 Fib level around $162, serving as the next layer of structural support.
Daily indicators present a mixed picture. The EMAs still maintain a golden crossover, keeping the short- to medium-term trend technically bullish. However, the MACD lines remain bearishly crossed, the RSI sits in neutral territory, and the MACD histogram has just started to tick higher, suggesting early signs of bullish momentum despite prevailing downside pressure.
Nvidia
Nvidia Hits Support At the 200-4H-EMA
Nvidia is currently holding at a key intraday support level, the 200-4H EMA at $177. A bullish reaction here would open the path toward the 0.382 Fib retracement at $186, where the 50-4H EMA adds an additional layer of resistance.
Momentum, however, remains weak. The MACD lines are bearishly crossed, the MACD histogram continues to tick lower, and the RSI sits in neutral territory, reflecting a lack of directional conviction. On the bullish side, the EMAs still display a golden crossover, which confirms the trend bullishly in the short-term. Until momentum reverses, the 4H chart favors continued corrective pressure despite the support presently in play.
Nvidia (NVDA) – Technical Summary & Key Levels
NVDA has retraced roughly 20% from its $212 ATH, forming a controlled correction within a still-intact long-term uptrend. Momentum has softened across multiple timeframes, and the chart leaves room for additional downside before major structural support comes into play.
Key Support Levels
- $177 – 200-4H EMA (current intraday support)
- $165–164 – Major Fib support zone (0.382)
- $162 – 200-day EMA
- $156 – 50-week EMA
- $130 – Major Golden Ratio support (higher-timeframe)
Key Resistance Levels
- $186 – 0.382 Fib + 50-4H EMA
- $195 – Golden Ratio resistance (break needed to end correction)
Indicators
- EMAs: Bullishly crossed on higher timeframes (trend intact)
- MACD: Bearish crosses across several timeframes; histogram weak
- RSI: Neutral on all major timeframes
- Momentum: Mixed, leaning corrective until momentum indicators flip
Bias:
Correction remains active. NVDA likely continues downward/sideways unless it reclaims $195 with strength. A breakdown of $164–162 would expose $156, with $130 as the deeper structural target.
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