Nvidia (NASDAQ: NVDA) stock could be approaching a major long-term buying opportunity after plunging following the abrupt departure of co-founder and former CEO Jensen Huang amid a personal scandal.
Huang resigned on November 12 after admitting to an extramarital affair and facing scrutiny over reported relationships with company employees and a businesswoman suspected by U.S. authorities of having links to Chinese intelligence.
Nvidia’s board has launched an independent investigation, while Chief Financial Officer Colette Kress has taken over as interim CEO as the company searches for a permanent replacement.
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The leadership crisis has added pressure to Nvidia shares, which have fallen more than 30% from their October 6 all-time high. At press time, NVDA shares were trading at $162.
Nvidia technical outlook
However, TradingShot’s technical analysis suggests the correction could eventually present a significant accumulation opportunity, with the stock approaching historically important support levels.
According to an analysis shared in a TradingView post on November 13, Nvidia has traded within an ascending 11-year price channel, with major corrections in late 2018 and 2022 both finding a bottom around the weekly 200-week moving average (MA).
The latest decline has pushed the stock below its weekly 100-week moving average (MA100), potentially confirming the beginning of another bearish leg following its October peak.
Key NVDA price levels to watch
The projected $130-$135support zone also coincides with the 0.618-0.786 Fibonacci range of the long-term ascending channel, which TradingShot identifies as its historical fair-value zone.
An even stronger potential buying signal is emerging from Nvidia’s monthly Relative Strength Index (RSI).
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TradingShot pointed to 42 as a critical RSI support level, noting that previous tests coincided with the December 2018 and October 2022 market bottoms.
The indicator has also developed bearish divergence, with momentum recording lower highs despite Nvidia shares reaching higher highs.
The analyst expects the monthly RSI could revisit the 42 support level between December 2026 and January 2027, potentially marking another major long-term buying opportunity.
Featured image via Shutterstock
