Nvidia (NVDA) Share Price Continues Bearish Trend
Earlier this month, our analysis of NVDA's share price led us to:
Establish a downward channel (marked in red).
Suggest that the lower boundary could act as support, which was confirmed (circled).
On 13 March, we anticipated the median line of this channel might serve as resistance, and yesterdays ~5% drop in NVDAs share price (marked by a red arrow) aligns with this scenario.
As a result, NVDAs price has declined by approximately 17% since the start of 2025, despite being a market leader in 2024.
Why Did Nvidia (NVDA) Shares Drop Yesterday?
Market sentiment turned negative amid concerns that the Trump administration may soon impose previously delayed international trade tariffs.
Additionally, the Financial Times reported that Chinese regulators are encouraging firms to adopt data centre chips that meet stringent environmental standards. This raises concerns that Nvidias H20 chip, despite complying with U.S. export controls, may not meet Chinas environmental regulations. Investors seemingly viewed this as a bearish signal for Nvidias future sales in China.
Technical Analysis of Nvidias Share Price
Currently, NVDAs price is encountering resistance at the bullish gap formed on 12 March, around $112.50.
Given the broader market context, this setup could indicate an attempt by bears to resume the downtrend after a temporary rebound from oversold conditions. A consolidation pattern in the form of a narrowing triangle (marked in red) has also emerged.
If market conditions remain challenging, bears may push NVDAs price towards the psychologically significant $100 level.
Read more: https://fxopen.com/blog/en/oa-nvidia-nvda-share-price-continues-bearish-trend/
Text source: Forex Trading Blog
