NVIDIA Enters Bear Market Territory: What Traders Need to Know
📉 NVIDIA Corporation (NASDAQ:NVDA) has plunged by approximately 45% from its January 2025 peak, officially entering Bear Market territory. This significant decline marks the strongest correction since the 2022 Inflation Crisis, raising questions about the stock's short-term trajectory and long-term potential.
- Key Technical Levels: NVIDIA recently touched its 1W MA100 at $65-60, a critical support zone. A hold above this level could trigger a bullish reversal, while a breach may lead to further declines.
- Time Cycle Indicator: The Time Cycle Indicator aligns with the third count of previous cycle tops, suggesting increased symmetry in price action and RSI patterns.
- Historical Comparisons: Similar to the September-December 2018 correction, NVIDIA's current decline is both aggressive and rapid, though it has persisted longer than past corrections.
Potential Scenarios
🔮 Bullish Rebound: If NVIDIA's 1W MA100 holds and the RSI remains near the oversold limit (~30), a strong rebound could follow, potentially confirming a new Bull Cycle with targets exceeding $660.
🛑 Further Decline: Failure to maintain the 1W MA100 could result in a deeper move towards the $65-60 zone, with historical patterns indicating the possibility of a bottom by end of June 2025.
Strategic Insights
📊 Traders should monitor volume confirmations, structural shifts, and momentum indicators like RSI and MACD for early signs of a reversal. A strong weekly candle close above $96.30 could validate a bullish setup, while a break below $88.97 would signal increased bearish pressure.
💡 Patience and disciplined risk management are crucial. Position sizes should be adjusted based on the strength of support levels and the confirmation of reversal signals.
Conclusion
NVIDIA's entry into Bear Market territory presents both challenges and opportunities. By closely monitoring key technical indicators and historical patterns, experienced traders can navigate the current volatility and position themselves for potential rebounds.
