And now let’s move to today’s stock of the day and take a look at NVIDIA. NVIDIA is currently defending an absolutely key technical support level, which is the blue neckline of a head and shoulders formation visible on the daily chart.
This support is particularly relevant because it connects a sequence of higher lows dating back to July, making it an important structural level rather than a random price zone. Yesterday, price attempted to break below this neckline, but demand stepped in and NVIDIA managed to close the session back above support. That reaction confirms that buyers are still present at this level, at least for now.
However, the pressure on this support is clearly increasing. Price is spending time near the neckline, which from a technical standpoint often raises the probability of a breakout rather than a clean rebound. The longer a key level is tested, the weaker it tends to become.
From a bearish perspective, a daily close below the blue neckline would activate the head and shoulders formation and generate a proper long-term signal to sell. That would signal a structural shift and open the door for a broader bearish move.
On the other hand, the bullish scenario is still on the table. A strong and decisive bounce from this level, similar in character to previous rebounds, would confirm that support is being defended successfully. Such a move would invalidate the bearish structure and provide a signal to go long.
At this stage, NVIDIA is sitting at a true technical crossroads. The next few daily closes around this neckline will be crucial in determining whether the market resolves this structure into a confirmed breakdown or a renewed upside continuation.