NVIDIA Stock Warning: Head and Shoulders Pattern Signals Possible Reversal

NVIDIA’s chart is showing signs of a head and shoulders pattern, normally indicating a turn in the trend and suggesting risk to the downside.

If the stock price drops beneath the $101 level, a further fall in price is likely for NVIDIA.

The price is fighting against the $139.30 resistance level and decreasing buying pressure during the right shoulder of the candle reinforces the bearish tendency.

NVIDIA Corporation (NASDAQ: NVDA) is currently trading at $135.07, with technical signals suggesting the possibility of a medium-term trend reversal. A visible head and shoulders pattern on the daily chart is raising caution among market analysts, as this classical chart formation is often interpreted as a potential bearish signal. The structure — characterized by a peak (head) flanked by two lower highs (shoulders) — may imply waning upward momentum and an increased risk of downside pressure.

Chart Pattern Signals a Cautious Outlook

The left shoulder appears to have formed in early fall 2024, followed by the head near December highs, with the right shoulder developing through May 2025. This formation often precedes a breakdown below the neckline, which, in this case, aligns closely with the $101 support zone. If confirmed by a decisive breach below that level, it may indicate a deeper retracement in NVIDIA’s share price.

Despite the chart warning, the stock has recently seen some recovery off its May lows, now moving within a 24-hour range that remains bound between $133.62 and $139.30. Price activity near the upper end of this range, however, faces notable resistance, and the 3% pullback in recent sessions suggests buyers may be losing strength.

Key Technical Levels and Momentum

The immediate support level to watch lies at $133.62. A break below this threshold could add selling pressure and bring the neckline of the head and shoulders pattern into play. On the upside, resistance sits at $139.30 — a region that must be cleared for any near-term bullish continuation to materialize.

Volume trends and momentum indicators should be monitored closely in the coming sessions. A decrease in buying volume around the right shoulder could support the reversal thesis, while a spike in sell-side activity may confirm it.

Final Thoughts

While not yet confirmed, the presence of a head and shoulders top invites caution. A breakdown through the neckline could have broader implications for sentiment in the tech sector, especially given NVIDIA’s influential role in AI-related equities. Traders and investors may consider reducing risk or tightening stop-losses if bearish momentum builds.