Technical analysis by shkspr about Symbol NVDAX: Sell recommendation (5/22/2025)

NVDA Key Observations: Current Price Action: Price: $131.80 Recent Drop: -2.58 (-1.92%) Support and Resistance Levels: Immediate Resistance: $134.70 to $138.83 This red zone represents a strong supply area where the price has historically faced selling pressure. Immediate Support: $122.74 (Target Price 1) Further Supports: Target Price 2: $116.65 (Aligned with 0.5 Fibonacci Retracement) Target Price 3: $108.38 (Previous structural low) Trendlines: Red Uptrend Line: Recently broken, indicating weakening bullish momentum. Green Downtrend Line: Long-term resistance trendline from the previous Lower Highs (LH) is still intact and respected. The break below the minor trendline suggests a corrective wave (4) might be in motion. Fibonacci Levels: 0.382 Fib Retracement: $121.22 0.5 Fib Retracement: $116.22 These levels align with potential targets in a wave (4) corrective phase according to Elliott Wave theory. Target Prices: Target Price 1: $122.74 This is the closest demand zone and aligns with the 0.382 retracement—high-probability support. Target Price 2: $116.65 Aligned with the 0.5 Fibonacci level and previous consolidation. Target Price 3: $108.38 A major structural support and potential wave (4) bottom if market turns sharply bearish. Summary: NVIDIA Corporation (NVDA) is showing early signs of a corrective phase after failing to break through strong resistance in the $134–$138 range. The price rejected the resistance zone and is likely entering wave (4) correction. Key support levels to monitor are $122.74, $116.65, and $108.38, corresponding with Fibonacci retracement levels and historical price structure. A break below the short-term trendline increases the probability of a continued pullback before potentially resuming the uptrend in wave (5).