NVIDIA falls 25.3% in 24 sessions as $170.24 becomes the pivot

By Olivia Hart

NVIDIA Corporation shares closed at $178.67 on Monday, down 25.3% over 24 sessions from an October 6 close of $239.24, according to EdoLab-Markets' TradingView analysis. The 24-session decline spans roughly five trading weeks. EdoLab-Markets now weighs signs of exhaustion against a downtrend, an open investigation and November 17 earnings.

EdoLab-Markets' price account shows Monday opening with a gap down to $173.07, a 7.3% loss, before touching $170.24 and closing down 4.3%. About 460 million shares changed hands, the heaviest volume in the last 300 sessions, while $178.67 marked NVIDIA's lowest close since April 7. The source gives no calendar year for either date.

What has shaken NVIDIA beyond the chart?

The same analysis said NVIDIA's board opened an independent investigation, with directors and outside counsel, into the conduct of CEO Jensen Huang. It said Huang acknowledged he had fallen short of his responsibilities in a personal matter, but the note supplied no direct quotation, names for outside counsel or timetable for the review.

The note also cited talk of a possible foreign-intelligence angle. EdoLab-Markets said Beijing denies the possibility and that nobody has proven it; a shareholder class action has already been filed. The source identified no court, plaintiff or filing date for the lawsuit, and it linked an earlier idea titled “NVDA (1D) — Technical reset at EMA9 ahead of Q1 earnings.”

Takeaway: Governance and litigation now sit beside the technical selloff, but the foreign-intelligence theory remains unproven.

Where do the technical levels matter?

EdoLab-Markets identified signs of exhaustion, calling Monday's candle the clearest clue. The candle closed at 87% of its range after the gap down, with buyers at $170, while the RSI 14 read 27.4 and the RSI 2 read 17.1. Price also sat 13% below both the EMA 20 and the EMA 200.

EdoLab-Markets' chart sets three reference points:

• A daily close below $170.24 would end the bounce reading and expose the March 30 low of $163.90.
• A close above $186.64 would fill Monday's gap.
• $196.25, the November 5 high, would act as the brake on a further advance.

The author then set a firm condition: “Nothing here survives a daily close below $170.24,” EdoLab-Markets wrote. Its 3/5 setup rating, shown as three filled stars out of five, reflected the downtrend, open investigation and what the author called binary earnings. The source did not explain how it converted those factors into the rating.

Takeaway: In chart terms, $170.24 determines whether the rebound setup survives or $163.90 comes into view.

Can earnings break the downtrend?

Yahoo Finance consensus, as cited by EdoLab-Markets, puts November 17 revenue at about $109 billion and earnings at $2.47 per share. The analysis supplied no revenue growth rate, forecast period or operating breakdown, so readers cannot use the headline estimate alone to test the earnings hurdle.

EdoLab-Markets warned that oversold readings and capitulation volume often produce a pause rather than a durable turn. “Oversold readings with capitulation volume often bring a pause, not always a turn; earnings and the investigation can outweigh these levels,” the author wrote.

Before November 17, a close below $170.24 would put $163.90 in view; a close above $186.64 would reopen the path to $196.25. The source did not define a methodology for the 3/5 rating or specify a revenue and earnings scenario that would resolve the setup.

Takeaway: $170.24 is the immediate test: a breach points to $163.90, while a recovery through $186.64 puts $196.25 back in view before earnings.