Peter Smith
NVIDIA is showing renewed strength following a recent pullback, with the stock bouncing decisively from its lows. According to James Stanley, NVDA is up roughly 18% over the past three weeks while respecting a clean 23.6% retracement of the broader 2022-2025 move - a level frequently associated with trend continuation rather than reversal.
NVDA Retracement That Defined the 18% Bounce
The chart highlights a strong long-term uptrend followed by a controlled correction. That pullback found support above deeper Fibonacci levels, avoiding a breakdown into the 50% or 61.8% zones.
Price stabilized and reversed higher, suggesting that buyers stepped in early to defend the structure.
Instead of grinding sideways, the stock reversed sharply from those levels - a decisive reaction that reinforced the idea the broader bullish trend remains intact. For broader context on NVIDIA's financial position, NVDA free cash flow hits $96.7B offers additional perspective on what's underpinning investor confidence.
Reclaiming 23.6% Signals NVDA Structural Strength
A key feature of the current move is the reclaim of the 23.6% retracement level, positioned around the mid-$160s. This area is acting as a technical pivot, marking the transition from correction back into upward movement.
Holding above this level signals that the market is no longer in a retracement phase - it reflects a continuation attempt within the broader trend.
Holding above this zone means the stock is no longer in corrective mode. Instead, price is building support above a previously contested area, setting the stage for a potential continuation push.
NVDA Price Structure Holds Below the $210 Highs
Price is now consolidating below previous highs near the $210 region. The structure shows stabilization rather than rejection, with no signs of aggressive selling pressure at the top of the range.
This type of price behavior typically reflects balance - not weakness - as the market digests prior gains while maintaining upward positioning.
This kind of behavior is generally constructive. The market is absorbing prior gains without giving much back, which tends to be a sign of underlying demand rather than distribution. Traders tracking similar setups may find value in reviewing how NVDA pullback mirrors April 2025 structure, where a comparable correction played out before the next leg higher.
As long as the reclaimed retracement level holds, the structure continues to favor bullish continuation over a deeper correction.
Peter Smith
