NVDA Faces Resistance: Is the Downtrend Still in Play?

Binni Ong
03-27

Technical Analysis of NVIDIA Corporation (NVDA)

In my article earlier on $nvda, I mentioned that the price is at a support around 105. Indeed, price rebounded and head up towards $120. Read my article here: https://ttm.financial/post/412859811901736

Price has recently declined to the lower boundary of the channel, suggesting potential support. Low of the channel is around $105 which I had mentioned earlier in this article on 5 March 2025.

Current Price Action:

  • The price of NVDA is currently facing resistance at the upsloping trendline, which has historically acted as a dynamic barrier. Despite the upward slope, the trendline is now rejecting price advances, reinforcing its role as resistance.

  • Near to this upsloping trendline, price has made a bearish chart pattern resembling a double top.

  • Downtrend Intact: Despite the recent rebound, NVDA remains in a downtrend, forming consecutive lower highs.

  • Resistance at 130: Price is currently resisted by the upsloping trendline. Even if NVDA moves higher toward 130, it is still facing strong resistance, keeping the downtrend structure intact.

  • Support at 100-103: The key support zone remains at 100-103, where buyers previously stepped in. If this level is tested again, it will be crucial to see whether it holds.

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PE at a Historic Low! DCA Nvidia at $90 or Stay in Cash?
Nvidia was down 33% from its high of $153.13. However, the last time Nvidia peaked at $346 (pre-split) in 2021, it declined 68% to $108 before bottoming out. Its PE and Forward PE both dip to a record low of 30 and 20. Now, with voices emerging that the semiconductor bull run is over, is the current correction far from enough? Its historic low of forward pe is 18 in 2025. If Nvidia further falls to $83, its forward pe will surpass the level in 2015. Would you DCA Nvidia at $90 as it at a historic low level? Or stay in cash given the high volatility?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Valerie Archibald
    03-28
    Valerie Archibald
    it rebounded from 107. let us see what will happen this time
  • Merle Ted
    03-28
    Merle Ted
    I am a long and I believe Nvidia shares will go up again.
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