Nvidia tests $205 support after failing near $235

Nvidia shares most recently closed at $218.29 on Sept. 11, still above the 50-day moving average of $212.36 but below the recent peak near $235.20. The stock’s RSI stood at 52.6, suggesting neither an overbought nor oversold condition, while MACD remained positive, indicating the broader trend has not fully broken down yet.

The concern is that the rally from $176.78 in late February to the May peak near $235.20 has since stalled into a broad consolidation. The price action now resembles a classic double top, with $205 acting as the neckline that would need to fail for the bearish pattern to be validated.

For investors, the line matters because Nvidia has become the market’s shorthand for AI spending. Any sustained break below support could spill over into semiconductors, AI infrastructure names and high-multiple growth stocks more broadly, especially if traders begin to question whether the sector’s valuation is outrunning near-term earnings momentum.

That said, the bullish case remains intact as long as shares hold above support and retake the $235 area. A clean move through that level would put the stock back at fresh highs and likely reset the debate over whether Nvidia’s AI-led rally still has room to run.

Adalytica’s earnings sentiment gauge on Nvidia remains in “Greed” territory at 78, though awareness is flagged at “Extreme Fear,” underscoring how crowded and sensitive the trade has become. The next catalyst is whether shares can defend $205 or whether the market starts pricing in a deeper technical correction.