NVIDIA shares (NVDA) are currently showing signs of a reversal after a prolonged decline. On March 31, a strong bullish candle formed and closed at $174.01, hinting at a possible shift in the short-term trend.
Fundamental factors are set to play a key role. A potential de-escalation of the conflict in the Middle East is improving investor sentiment and reducing risk aversion, giving stocks a lift. Besides, the company announced a $2 billion strategic investment in Marvell Technology, along with plans to expand partnerships in artificial intelligence (AI) development. These moves cement NVIDIA’s leading market position and build strong long-term support for its shares.
Technical indicators are singing the same optimistic tune. The Relative Strength Index (RSI) is at 18 on the daily chart, flashing oversold conditions. Such a setup often paves the way for a rebound or at least a pause in the decline.
The Chaikin Oscillator also points to a change in the winds, signaling waning selling pressure and the early signs of capital accumulation—a classic precursor to a trend shift and further upside.
Bollinger Bands tell a similar story. NVIDIA shares have recently returned to the range between the upper and lower limits, which typically leads to a climb toward the middle line—the nearest target at $178. Take into account that bands are currently widening, reflecting elevated volatility and hinting at an impending momentum reversal.
This Friday, traders will be closely watching the US employment report. In February, we saw hiring sliding to a near six-year low. If the March data reinforces concerns over the labor market, investors may begin hoping for rate cuts from the Federal Reserve (Fed). Such an environment would provide even more fertile ground for NVIDIA’s stock to rally.
Consider the following trading strategy:
Buy NVDA within the $172.00–$168.00 range. Place Take profit at $180.00 and Stop loss at $165.00.
The forecast remains relevant between April 1 and April 8, 2026.
