Nvidia continues to hit new highsNVIDIA CorporationBATS:NVDAFOREXcomIt has been a strong start to the week for Nvidia, with the stock posting a daily gain of more than 3.5%. Over the last two trading sessions, the price has advanced by more than 7%, highlighting a strong bullish bias in current price action. Buying pressure has been supported by expectations of solid demand in the artificial intelligence sector, along with positive outlooks for upcoming tech earnings. This has allowed the stock to continue printing new short-term highs. However, it is important to note that any negative developments that weaken market confidence could trigger meaningful profit-taking, especially given that the stock is trading near all-time highs. Uptrend remains intact: Over recent weeks, optimism around Nvidia has allowed the price to break out of the sideways range that had been in place since late 2025. This breakout not only invalidated the previous structure but also reinforced a solid bullish bias, resuming the longer-term uptrend that has been in place for several months. In this context, the upward trendline once again becomes the key technical reference. That said, the pace of the recent rally has been quite strong, which could open the door to short-term corrections. RSI: While the RSI remains above the 50 level, it has now moved into overbought territory (above 70), suggesting a potential imbalance driven by strong buying momentum. This could lead to short-term pullbacks. MACD: A similar signal is emerging in the MACD, where the price continues to make higher highs while the indicator shows lower highs. This points to a bearish divergence, which may indicate fading momentum and the potential for corrective moves in the near term. Key levels to watch: $220: With no historical references above current levels, this stands as the nearest psychological barrier. Sustained moves above this level could reinforce a more aggressive bullish trend in the short term. $197: A nearby support level just below the $200 psychological area. This level could act as a key reference in the event of short-term corrections. $185: Key support aligned with the 50 and 200-period moving averages. A move toward this level could weaken the current bullish structure and open the door to a more pronounced phase of indecision. Written by Julian Pineda, CFA, CMT – Market Analyst