A marketing expert has warned against that Nvidia (NASDAQ: NVDA) The stock’s structure is pointing to a possible correction that could cause the stock to lose $200 and fall to $160.
In particular, as of press time, shares of NVDA were valued at $ 215, ending the last session by almost 2%, while property it was up 14% year to date.
The bearish outlook comes despite Nvidia also beating earnings expectations, with the market seemingly priced out of strong results at the stock market in recent weeks.
According to a TradingShot analysis shared in a TradingView post on May 23, Nvidia usually gathers before receiving funds money responding well to the results from companies that are compatible with artificial intelligence methods, which leave little room for extra cash.
The analysis revealed that Nvidia is trading in the weekly Relative Strength Index (RSI).
At the same time, the stock also made “higher highs” that are near the top of its rise, a pattern that initially began to decline significantly.
Depending on the current situation, the decline could continue until the end of July 2026, when Nvidia could return to its 100-week high. move approx (MA) This level previously served as strong support in the 2025 correction before the stock resumed its growth.
Analysis services that move to $160 may indicate intermediate support in the short-term and possible repositioning for investors if history repeats itself.
However, the weekly RSI support near 35.50 remains challenging, with a break below that level potentially opening the door to a deeper correction.
While Nvidia’s long-term outlook is still supported by strong demand for AI, the analysis suggests that the stock could enter a volatile period following its rally above $220.
Nvidia’s blockbuster acquisition
Despite the positive outlook, Nvidia delivered another blockbuster, reporting Q1 2027 revenue of $81.6 billion, up 85% year-on-year and 20% from the previous quarter, driven mainly by its AI-focused Data Center business, which generated $75.2 billion in revenue.
Adjusted EPS came in at $1.87, hitting an average of $1.76, while free cash flow hit $49 billion.
Nvidia also raised its third-quarter dividend to $0.25 per share and approved an additional $80 billion buyback program.
For Q2 FY2027, the company reported revenue of about $91 billion, exceeding Wall Street’s expectations of $87 billion.
However, the stock fell after a previous “selling story”, which recently peaked at around $236.
