Nvidia’s stock has seen a sharp reversal, breaking below its established trend channel and extending its recent decline. The move has caught the attention of traders and long-term investors alike, as the technical picture now suggests a period of recalibration may be underway.

One of the key levels to watch is the 50-day moving average, which currently sits near the $165 mark. This level often acts as a widely monitored area of support during market corrections. A clean hold above it could signal a stabilizing phase, while a decisive break beneath may invite further selling pressure.

Adding to the story is the Relative Strength Index (RSI), a popular momentum gauge. The RSI has dropped to levels not seen since mid-April—around the same time Nvidia’s strong upward rally began. A deeply oversold RSI reading can often be a sign of exhaustion among sellers, which in turn may set the stage for a rebound.

For traders, the situation presents a clear tension: will Nvidia regain momentum at this critical support, or will the weakness extend into a deeper pullback? Long-term investors may view this volatility as part of a healthy cycle, particularly given the company’s strong fundamentals and leadership position in key markets like AI and semiconductors.

In the near term, all eyes remain on the $165 level. If Nvidia can stabilize and regain its footing, it could reassert its dominant trend. If not, the market may be signaling a longer pause before the next leg higher