Nvidia Shares Rise 1.46% Amid Mixed Technical Signals As Rebound Tests Key Resistance

Nvidia (NVDA) shares rose 1.46% to $170.76 in the most recent session, marking a two-day gain of 2.24% amid moderate trading volume. This price action follows a volatile period from late August highs near $184, with technical indicators now offering mixed signals about the sustainability of the rebound.
Candlestick Theory
Recent candlestick patterns show a potential short-term reversal attempt. The September 5th session formed a long red candle (low: $164.07, close: $167.02) signaling strong selling pressure. This was followed by two consecutive green candles (September 8-9) closing near session highs, suggesting accumulation near the $166.74–$164.07 support zone. Key resistance lies at $171.87–$172.41 (September 3-4 highs), while sustained closes below $167 could invalidate the bullish pattern.
Moving Average Theory
The 50-day SMA (~$163) maintains above the 100-day SMA (~$155) and 200-day SMA (~$145), confirming the primary uptrend remains intact. However, the current price ($170.76) trades below the 20-day SMA (~$173), reflecting near-term bearish pressure. Consecutive closes above the 20-day SMA would signal regained bullish momentum, while the convergence of the 50/100/200-day SMAs provides robust long-term support near $150–$155.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, though the MACD line remains below its signal line. This divergence could foreshadow a bullish crossover if the rebound continues. The KDJ oscillator exited oversold territory (below 20) on September 8, with the %K line (46) crossing above %D (42), suggesting short-term upside momentum. However, both indicators remain below neutral midpoints, requiring further confirmation for trend reversal conviction.
Bollinger Bands
Bollinger Bands expanded sharply during the August–September decline, indicating heightened volatility. The price recently touched the lower band ($164.07 on September 5) before rebounding, a typical oversold reaction. The 20-day SMA (mid-band) at $173 now acts as immediate resistance. Band contraction began this week, implying reduced volatility that often precedes decisive breakouts. A close above $173 would target the upper band near $182.
Volume-Price Relationship
Volume trends raise sustainability concerns for the rebound. The September 5th sell-off occurred on high volume (224.4M shares), confirming bearish conviction, while the subsequent 2.24% rebound over two sessions saw declining volume (163.8M and 157.5M shares). This volume divergence suggests cautious participation in the recovery. Breakouts above $172 resistance require volume expansion (>180M) for validation.
Relative Strength Index (RSI)
The 14-day RSI rebounded from 38 (approaching oversold) to 52 following the two-day rally. This neutral positioning (30–70) offers limited directional guidance but aligns with short-term trend stabilization. Notably, RSI did not reach oversold extremes (<30) during the recent sell-off, potentially weakening the reversal signal. Sustained movement above 55 RSI would strengthen bullish momentum confirmation.
Fibonacci Retracement
Applying Fibonacci levels to the August 28th high ($184.47) and September 5th low ($164.07) shows the price (170.76) testing the 38.2% retracement ($171.87). This aligns with technical resistance from September 4th highs. Confluence exists at this level, making a break above critical for targeting 50% ($174.27) and 61.8% ($176.77) retracements. Failure here may retest the 23.6% support ($168.88).
Confluence & Divergence
Confluent signals emerge near $172: Fibonacci resistance, Bollinger mid-band resistance, and September 3-4 price highs. Bullish alignment appears between KDJ’s upward crossover, MACD’s reducing bearishness, and candlestick reversal patterns. However, bearish volume divergence and the RSI’s absence of oversold conditions during the correction weaken reversal confidence. The primary trend favors upside upon decisive breaks above $173, though volatility compression warrants caution.