How has the DeepSeek news impacted the technicals driving the price of Nvidia

Nvidia’s stock price has tumbled on the DeepSeek news, raising questions about its valuation multiples. Adam shares some compelling fundamental insights on what could be the biggest news story of 2025 and beyond. You can read about it HERE. PS. the decline is also the largest Market cap decline ever (CLICK HERE).

That is more fundamental. What about the damage from price declines from a technical perspective?

Looking from a technicals, the price action reflects significant bearish momentum. The stock gapped below the 38.2% retracement of the move up from the August swing low at $129.28, which now serves as a key resistance level. Staying below this level reinforces the bearish bias, signaling potential for further downside. Traders should monitor this level closely for signs of sustained selling or a possible easing of bearish sentiment.

On the downside, the critical target is the 200-day moving average (MA) at $121.80. If the price declines to this level and holds, buyers could still retain some control. However, a break below the 200-day MA would signal deeper selling pressure and open the door for further declines.

In summary:

• Key Resistance: 38.2% retracement at $129.28. Staying below is bearish.
• Key Support: 200-day MA at $121.80. Holding above keeps buyers in play, but a break signals increased bearish bias.

Sellers are currently driving the market, but the 200-day MA will be a pivotal level for traders to watch in the coming sessions.

This article was written by Greg Michalowski at www.forexlive.com.