Nvidia is recovering nicely, and a closer look suggests the market may have completed a counter-trend W-X-Y correction within the channel, especially after the rebound from the 160–153 support zone we highlighted earlier. This development increases the likelihood that the correction phase is already behind us. However, more cautious traders may still prefer to wait for a confirmed breakout above the channel resistance to validate that bulls are fully in control.
From a tactical perspective, any near-term pullbacks could present opportunities to rejoin the broader uptrend. If price reacts from the current channel resistance, the first support to monitor comes in around 177, while the key invalidation level stands at 164.
On the upside, the 198 level remains an important temporary resistance. A sustained break above this zone would open the path toward the November highs, signaling potential continuation of the larger bullish trend.
Momentum indicators are also aligning with this outlook. The RSI is recovering back above the 50 level, which supports the idea that bullish momentum may be returning to the market.
Highlights:
- Correction may be complete, forming a W-X-Y structure.
- Support at 177 on pullbacks; invalidation level at 164.
- Resistance at 198; breakout could lead toward prior highs.
- RSI back above 50, signaling strengthening bullish momentum.
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Source: https://www.fxstreet.com/news/nvidia-rebounds-as-correction-nears-completion-bullish-momentum-builds-202604160916
