Shares of Nvidia have dropped below a key support trendline that was first set in April 2025. Typically, when the stock price hits this trendline, it bounces back, but the current break raises some worries. As of now, it’s unclear whether the stock will stay below the trendline. If it does confirm this break, analysts predict a possible decline to $150 per share. However, if it can find support again, it might rise back to $184.

Nvidia Current Trading Influences

Today, Nvidia’s stock is up, thanks to ASML’s earnings report. It’s currently at $184, right at the trendline. How it closes today will be important. Traders are closely watching if it can close above $184, which would be encouraging, or if it drops below $180, signaling potential trouble. In addition, the International Monetary Fund’s October 2025 World Economic Outlook slightly raised its global growth predictions. However, it still indicates that growth remains slow. On another note, Lido DAO has regained support above $1.00 as it continues its recovery. The latest launch of Lido V3’s final testnet aims to upgrade its main protocol’s core contracts.

Broader Economic Picture And Strategy

With Nvidia breaking an important support trendline from April 2025, we are closely monitoring the situation. The recent bounce to $184 after ASML’s earnings is a major test of this previous support level, which may now serve as resistance. Traders should see this as a critical point, as the next few closing prices will determine the medium-term direction. The IMF’s October 2025 forecast shows that global growth remains weak, which puts pressure on high-valuation stocks. Nvidia is still trading at over 60 times its forward earnings, making it very sensitive to changes in market mood and economic conditions. This situation heightens the importance of the current technical break compared to if it were in a strong economy. For those expecting confirmation of a breakdown with a close below $180, buying put options is a straightforward strategy. We are paying attention to the November and December 2025 expiration cycles, focusing on the $170 and $160 strike puts. If Nvidia decisively fails at the $184 level, the $150 target becomes more likely. We’ve seen this pattern with other leading stocks. For example, when Meta broke its long-term trendline in early 2022, it led to a significant decline. This shows how weakness in a major stock can indicate a major price adjustment. Based on this history, we should take Nvidia’s current warning signs seriously. On the flip side, if Nvidia can close strongly above the $184 trendline, it could indicate a “fake-out” and trap bearish traders. In this case, selling out-of-the-money put credit spreads with a floor around the $175 level could be a smart way to earn some premium. Alternatively, quick traders might consider buying short-dated call options to take advantage of a potential rise. Recent industry reports heighten our caution. A Semiconductor Industry Association report showed that global data center chip orders grew just 2% in the third quarter of 2025, falling short of the expected 5%. This slowdown reinforces the technical break in Nvidia’s stock. Given this uncertainty, implied volatility on Nvidia options is rising, making straddles a practical strategy for those anticipating a significant price movement but unsure of the direction. Create your live VT Markets account and start trading now.

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