Nvidia Finds Its Footing At $171, Now It Has To Prove It

Nvidia (NVDA) is trying to put in a bottom, and so far the buyers are showing up right where they should.

Take a look at the chart. NVDA came down hard into $171 and found support off the support level that connects back to the June 2024 highs. That line was resistance for most of 2024 and 2025. Once price broke above it, it became the floor. That’s the oldest rule in technical analysis, and it’s playing out right in front of us. So far, that floor is holding and the stock is bouncing (but you still need to see how it closes out the day).

What got us here wasn’t pretty. From the highs to the lows, NVDA dropped roughly 30%. Along the way, it lost the rising trend line off the April 2025 lows, broke the horizontal support around $192 that held it up for most of the past year, and sliced through its 200-day moving average. That’s a lot of damage in a short amount of time, and you don’t fix it in a day.

Then there’s the news. Jensen Huang admitted to an affair in a note to employees, and the story has picked up a China angle that has the board asking questions. I’m not going to pretend that’s nothing, as it is a real mess for him and his family, and the board has to take it seriously. But from where I sit as a trader, none of it changes how many chips Nvidia sells next quarter or the quarter after that. Long-term investors are most likely going to look at this as noise, regardless of the moral and personal fallout that comes with it. If anything, headlines like this tend to shake out weak hands and give patient buyers a better price.

So here’s what I’m watching. If the broader market has put in a short-term bottom, and I think there’s a chance it has, then a stock like NVDA that has already been marked down 30% is going to attract buyers. Money that sat on the sidelines during the selloff needs a place to go, and the leaders usually get it first.

But what you also want to remember is this: a bounce off support is not a new uptrend. NVDA is still trading below its 200-day moving average, and it has a lot of overhead to work through. The old $192 support is now resistance, and I’d expect sellers to show up there. Getting back above that level would tell me the damage is being repaired. Failing there would tell me this was just a relief rally.

If you’re taking a trade here, the risk is easy to define, and that’s what makes this setup worth looking at. Your line in the sand is the $171 low. A close below the trend line means the support failed and you get out. No hoping, no averaging down, no telling yourself it’s Nvidia so it’ll come back. Plan your trade, manage your risk, and let the profits take care of themselves.

For now, the bulls get the benefit of the doubt at support. Let’s see if they can keep it.