Nvidia has gapped to the downside and tested a key technical target area. What next?

Just last Tuesday, Nvidia traded at an all-time high of $243.37. Since then, six of the past seven trading days have produced lower closes. Today’s low reached $212.85, representing a decline of 12.54% from that record high.That is a sharp reversal. However, today’s selling also brought the price to a key technical support area—and buyers have responded.Sellers had their shot below supportThe move lower picked up steam after Nvidia broke below a swing area defined by prior highs between $230.32 and $236.54. That break gave sellers more control and turned the former support area into overhead resistance.Today’s gap lower brought two additional technical levels into play:100-day moving average: $214.4738.2% retracement of the 2026 trading range: $213.15The low at $212.85 briefly broke below both levels. However, sellers could not sustain the break, and the price has rebounded toward $217.The sellers had their shot below support, and they missed. Now the buyers need to build on that recovery.A familiar test of the 100-day moving averageBack on September 14, Nvidia also traded below its 100-day moving average. The following day, the price held above that moving average, helping set the stage for the eventual run to a record high.Today’s recovery has a similar starting point, but the follow-through still needs to develop.For traders focused on defining risk, the message is straightforward: holding above $214.47 keeps the recovery attempt intact, with $213.15 providing another nearby reference. A sustained move below both would weaken the buyers’ case and put sellers back in control.Holding support creates an opportunity for a bounce. It does not tell us how far that bounce will go.What would give buyers more confidence?The hourly chart provides the next upside hurdles:Near $222: The broken upward-sloping channel trendline.$226.14: The 200-hour moving average.$230.63: The 100-hour moving average, within the broader $230.32–$236.54 swing area.Moving back above $222 would be a first step. Recovering the 200-hour moving average and then the 100-hour moving average would give buyers progressively more technical control.The trading lesson: support defines risk; resistance measures progressBuyers have defended an important area, but they still have work to do.The support below gives traders a place to assess whether the recovery is holding. The resistance above provides checkpoints to judge whether buyers are gaining control.For now, Nvidia is caught between those levels. Watch whether support continues to hold—and then wait for the next shove.In the video, I walk through the daily and hourly technical levels that will help tell the story. This article was written by Greg Michalowski at investinglive.com.