NVIDIA RSI Trendline Breakout: Stock Analysis at All-Time High

Why RSI Trendlines Matter

In my chapter on the Relative Strength Index (RSI), I discussed how drawing simple trendlines on RSI can reveal momentum shifts earlier than price itself. Most traders look at RSI for overbought/oversold levels or divergence. But trendline analysis on RSI adds another layer — it shows when control may be changing hands between buyers and sellers.

NVIDIA’s Setup

RSI Breaking out of the downward sloping trendline

Take NVIDIA (NVDA) as a live example. Recently, the RSI broke above a falling trendline after weeks of downward pressure. This is not a textbook “pattern target” like a head-and-shoulders. Instead, it signals that momentum is turning upward again.

On the price chart, this shift is visible as NVDA pushes into its all-time high zone. Volume has expanded on the breakout day, adding conviction to the move. If buyers follow through, RSI could soon enter the overbought territory, as expected by the target shown above. Only a strong move in price can take the indicator to the targeted level.

In other words: momentum and price are now speaking the same language.

NVIDIA RSI Trendline Breakout: Stock Analysis at All-Time High

The RSI trendline breakout does not predict exact numbers, but it acts like a green light: buyers are regaining control. With NVDA pushing into new highs, the setup points toward a short-term long candidate. The risk, as always, lies in false breakouts — so watching follow-through in the next few sessions is key.

Author: Gautam Mazumdar📖 Decoding Charts: A Handbook of Technical Analysis

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