Nvidia Slides 3.32% as Three Black Crows Pattern Signals Bearish Momentum

Nvidia (NVDA) declined 3.32% in the most recent session, marking its third consecutive daily loss with a cumulative 4.18% drop over this period. This downward momentum warrants a multi-dimensional technical assessment of the stock's trajectory.
Candlestick Theory
The recent price action formed a "Three Black Crows" pattern—three consecutive bearish candles with progressively lower closes—after peaking at $184.47 on 2025-08-28. This pattern signals exhaustion of the prior uptrend near the psychological $185 resistance. Immediate support resides at $173.15 (recent low), with more substantial historical support near $170.70 observed in mid-August. A breach below $170 could activate stop-loss orders and accelerate declines, while resistance now consolidates around the $180–$182 zone, which previously served as consolidation support.
Moving Average Theory
The 50-day moving average ($171.80) provided dynamic support during August pullbacks but was decisively breached during the current sell-off. While the 100-day MA ($160.25) and 200-day MA ($144.30) remain ascending beneath the price—supporting the longer-term uptrend—the loss of the 50-day MA suggests deteriorating near-term momentum. Bearish confirmation would emerge if the 50-day MA crosses below the 100-day MA, though this crossover has not yet materialized.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the MACD line crossing below its signal line on 2025-08-28—a bearish confirmation aligned with the three-day decline. Concurrently, the KDJ oscillator shows %K (22) and %D (28) plunging into oversold territory after the recent peak near overbought levels. While this indicates stretched downside momentum, bearish crossovers in both MACD and KDJ warn against premature reversal assumptions unless consolidation occurs.
Bollinger Bands
Volatility expanded sharply during the decline, with the price breaking below the 20-day moving average ($178.50) and testing the lower Bollinger Band ($172.80). The bands themselves widened from a recent contraction phase, reflecting rising selling pressure. Closure below the lower band for multiple sessions (now at $172.80) could indicate oversold conditions but requires stabilization to signal exhaustion.
Volume-Price Relationship
Distribution patterns emerged during the downturn, with notably high volume on the first down day (2025-08-28, 281M shares) signaling institutional selling. However, volume tapered during subsequent declines (242M shares most recently), suggesting diminishing selling intensity. This divergence between price and volume momentum warrants monitoring; renewed high-volume breakdowns would confirm bearish conviction.
Relative Strength Index (RSI)
The 14-day RSI (38) has retreated sharply from near-overbought conditions (>70) in late August to approach oversold territory. While the current reading suggests waning upward momentum, its position above 30 delays an official oversold signal. Historical reversions from similar RSI levels have occurred near $170 support, making this a key watch zone.
Fibonacci Retracement
Applying Fibonacci levels to the swing from the August low ($170.70) to the recent high ($184.47) reveals critical thresholds. The current price ($174.18) has breached the 61.8% retracement level ($175.96) and approaches the 78.6% level ($173.65). Sustained trade below 78.6% opens the path to full retracement at $170.70. Confluence exists here with horizontal support, amplifying its technical significance for directional bias.
Confluence and Divergence
Strong confluence emerged around the $175–$178 zone, where the 50-day MA, Fibonacci 61.8% level, and volume-based resistance aligned. The breakdown below this zone activated synchronized bearish triggers across candlestick, moving average, MACD, and Fibonacci studies. However, a positive divergence exists between price and volume momentum during the latest decline, while oversold KDJ readings contrast with neutral RSI—warning against extrapolating bearishness. Probabilistically, the confluence of indicators favors near-term downside unless the stock reclaims the $178 pivot, though divergence elements suggest the sell-off may be nearing an exhaustion phase at historical supports.