Nvidia’s rally keeps pushing price toward the $200 zone, even as its earnings multiple continues to compress on the weekly view. Meanwhile, the daily structure shows a tightening flag setup, which keeps the breakout scenario in focus.
NVDA price climbs as valuation multiple contracts
Nvidia shares continued to trade near record levels on the weekly chart, with price holding around the $190–$191 area after a strong multi-month advance. Since early 2024, NVDA has moved steadily higher, printing higher highs and higher lows, while momentum stayed intact despite periodic pullbacks. As a result, the broader trend remains firmly upward.
NVIDIA Weekly Chart. Source: TrendSpider
At the same time, valuation metrics moved in the opposite direction. Nvidia’s earnings multiple has steadily declined from extreme levels seen in 2023, when the stock traded above 150x earnings, toward the mid-40x range shown on the chart. Therefore, price appreciation has outpaced multiple expansion, meaning earnings growth absorbed much of the valuation pressure. This divergence stands out because price strength continued even as the multiple compressed, signaling that fundamentals, not just sentiment, supported the move.
NVDA structure points to a breakout attempt toward higher targets
The chart highlights a tightening structure that continues to favor upside continuation. NVDA trades within a rising trend that has held since mid-2024, while pullbacks repeatedly respect the same ascending support line. As a result, downside attempts lose momentum quickly, and price compresses rather than breaking lower.
NVDA Daily Chart. Source: StockCharts / X
At the same time, a short, downward sloping resistance line caps recent advances. Price keeps pressing into that line, which suggests sellers are absorbing demand at progressively higher levels. Therefore, the pattern resembles a consolidation within an existing uptrend rather than a distribution phase. This behavior aligns with a flag-type structure, where volatility contracts before a directional move.
Momentum also supports the setup. The RSI holds in a neutral to constructive zone, avoiding both overbought and deeply oversold conditions. That balance leaves room for expansion if resistance gives way. If price clears the descending trendline decisively, the structure opens the path toward higher extension levels, with the $200 area acting as the first psychological zone, followed by the potential for fresh all-time highs if continuation holds.
Source: https://coinpaper.com/14243/nvda-stock-forecast-200-zone-becomes-bull-magnet
