Nvidia Tests $176.5 Wedge Support With Hidden Bullish Divergence

Nvidia shares are hovering near a critical support level that could determine the stock’s next move. The chip giant is trading around $176.5, sitting right on the lower edge of a descending wedge pattern that’s been holding since October. What makes this interesting is what’s happening beneath the surface with momentum indicators.

The daily chart shows NVDA forming a higher low near the wedge base, even as the overall structure continues sloping downward. This isn’t a dramatic selloff, it’s more like controlled consolidation where the stock is coiling within a tighter and tighter range. The wedge itself suggests price action is compressing, which often happens before something bigger develops.

Here’s where it gets technical: the relative strength index is sitting near 41.9, making a lower low while the actual price is holding a higher low. That’s what traders call hidden bullish divergence. As noted in the analysis, “This configuration typically reflects underlying trend persistence rather than a confirmed reversal,” pointing to potential continuation strength rather than an immediate turnaround signal.

“The pattern is forming at a clearly defined support zone, as Nvidia trades near recent lows following a sustained pullback from levels above 200”

Volume hasn’t spiked during this latest dip into support, which means there’s no panic selling pushing the stock lower. Instead, NVDA seems to be quietly setting up shop at this technical level while the market figures out what comes next.

⬤ Why does this matter beyond just one stock? Nvidia remains the bellwether for AI-related equities. When NVDA moves, the entire AI sector tends to follow. Technical setups like wedge support combined with hidden bullish divergence get extra attention during consolidation phases because they can signal when a stock is ready to expand directionally. With Nvidia positioned at such a well-defined technical level, how it behaves here could set the tone for broader AI leadership in the coming sessions.

My Take: This setup feels like the calm before something meaningful. Nvidia isn’t breaking down despite pressure, and that hidden divergence suggests underlying strength. If $176.5 holds, we might see renewed interest from buyers looking for AI exposure at support.

Source: TrendSpider