Nvidia (NVDA) Approaches Major Technical Resistance Test

Shares of Nvidia (NVDA) have surged over 35% from the lows of just two weeks ago. After bottoming out near $91/share, Nvidia has risen 8 of the last 9 trading days. The bulls appear to be fully back in control.

However, the charts may say differently. There is a major down-sloping trend line on Nvidia that connects each pivot high from the all-time high. In addition, there is a major gap fill approaching at $126.35. These two levels converge.

This will be the biggest test for Nvidia within this rally. Should it push through this level, it may retest the all-time highs. Earnings are in less than two weeks, and the truth will be known. Will Nvidia keep its margins at 75% or better. Will revenue blow away estimates. Will they raise guidance? All these questions will soon be answered.

The test of this major level at $126.35 will likely indicate the results. Why? Because smart money likely knows the outcome already. If they start dumping, and Nvidia cannot break $126.35, it likely signals further downside back to $90/share.

Watch this technical level in the coming days. How Nvidia performs will likely dictate how the whole market performs.