NVDA Tests $160s as Chart Structure Tightens Near Key Support

Nvidia shares are entering a more delicate phase as recent trading shows consolidation within the broader uptrend. The stock is becoming “a little bit spicy,” with chart patterns suggesting that without fresh catalysts, the current structure could start showing cracks. Weekly price action shows momentum stalling below recent highs, indicating the market is hesitating rather than pushing for a clear directional move.

The chart shows NVDA trading below the upper boundary of a rising channel after several years of strong gains. Shares have pulled back from higher levels and now hover near intermediate Fibonacci retracement zones, including the 0.382 level around the mid-$160s. While this pullback hasn’t broken the broader uptrend yet, it reflects slowing momentum as the stock digests previous gains instead of extending higher.

“NVDA is becoming a little bit spicy – without another catalyst, the existing structure could start to weaken.”

One standout feature is the alignment between the 200-week weighted moving average and the 0.618 Fibonacci retracement near $81. This confluence serves as a major long-term reference point if downside pressure builds. The overlap between these technical levels carries added weight on higher timeframes. While current prices remain well above this zone, it defines an important structural anchor beneath the market.

This setup matters because Nvidia heavily influences the technology and semiconductor space. When NVDA pauses or consolidates, it often affects broader market sentiment, especially in growth-oriented sectors. The current structure shows a balance between longer-term trend support and near-term uncertainty. How Nvidia resolves this phase—through renewed momentum or extended consolidation—will shape expectations for trend durability across major tech stocks in coming months.

My Take: Nvidia’s consolidation phase reflects natural profit-taking after massive gains, but the $81 support zone remains distant. Near-term action around $160s will determine if bulls regain control or if deeper retracement unfolds, making this a pivotal moment for tech sector leadership.

Source: The Long Investor