The performance of NVDA is analysed through 1-hour Elliott Wave Charts, focusing on a rally from 7 April 2025. This rally is structured as an impulse, suggesting an upward trend continuation. Members were guided to refrain from selling, and instead to take opportunities to buy during pullbacks at specific blue box areas marked on the chart.
The cycle, beginning 21 April 2025, ended its third wave at $212.19, followed by a pullback as a double three structure. Wave W concluded at $195, with wave X peaking at $202.92. Wave Y reached the blue box zone at $185.66–$174.97, where future buyers were anticipated to seek gains or a minimum three-wave bounce.
A later NVDA chart indicates upward movement after the correction in the blue box region. This allowed for a risk-free position for those who adhered to the suggested buying strategies. A break above $212.19 is necessary to confirm further extension towards a zone between $220.01 and $232.72. This would avoid another correction.
The analysis is intended for informational purposes, and the recommendation is to perform own research before making investment decisions.
Based on the recent price action, we see NVDA has found support in the $175 to $186 range, which was identified as a key buying zone. The stock has since bounced, suggesting the corrective pullback is complete. This presents a favorable setup for a continued move to the upside in the near future.
For traders looking to capitalize on this, buying call options with expirations in late December 2025 or January 2026 is a direct approach. This strategy allows enough time for the stock to potentially break its previous high and rally toward the target area. The recent bounce from support provides a clear technical basis for this bullish position.
This technical view is supported by strong underlying fundamentals, as we saw in NVDA’s last earnings report for Q3 2025, which beat expectations on strong AI chip demand. Recent industry data confirms NVDA has maintained its dominant market share, holding approximately 82% of the AI accelerator market through October 2025. This backdrop reinforces the idea that the recent price dip was a consolidation phase rather than a reversal.
The critical level to watch now is the previous high of $212.19. A firm break above this price would confirm the next upward leg is underway, targeting the $220 to $233 zone. Traders who entered near the recent lows could consider taking partial profits or adjusting their stop-loss to their entry point to create a risk-free trade.
We have seen similar patterns in NVDA’s past, particularly during the corrective phases in 2023, where sharp but temporary pullbacks occurred before the primary uptrend resumed. Those historical pullbacks often served as accumulation opportunities before the stock made new highs. The current structure appears to be following a similar playbook.
An alternative strategy for those with a moderately bullish outlook is to sell cash-secured puts. By selling puts with a strike price below the recent support, for instance around $170, traders can collect premium with the expectation that the stock will remain above this level. This approach benefits from both a rising stock price and time decay.
