Nvidia Stock Struggles to Hold Key Support Level

Nvidia, the chip-design firm behind many AI and gaming technologies, has been struggling lately. Its stock price has fallen by approximately 15% since reaching an all-time high of $236.54 in May.

The company is expected to release its fiscal Q2 results later this month, with analysts predicting a strong quarter. Wall Street expects Nvidia to report adjusted earnings per share of $2.08 on revenue of over $91.8 billion, representing a 98.1% increase from the year-ago period.

Nvidia's technical analysis shows that it has completed a head-and-shoulders pattern, a bearish reversal signal. The stock is currently testing its 200-day Simple Moving Average (SMA) at $193, and a definitive cross below this line could force professional fund managers to reevaluate their positions.

While the Relative Strength Index (RSI) has been weakening, it's still above the expected level for a bearish reversal. The Moving Average Convergence Divergence (MACD) is also showing some bearish signs, but they're not extremely strong.