NVIDIA stock forms inverse head and shoulders with target $230

The NVIDIA share is attracting the attention of technical analysts. On the hourly chart, an inverse head and shoulders pattern is visible, a classic signal that can indicate a price reversal to the upside. Analyst @alicharts points to a crucial level that will determine the next major move.

Inverse head and shoulders on the NVDA chart

The chart clearly shows an inverse head and shoulders pattern. The left shoulder formed earlier in June, after which the price dropped deeper towards the head around $191.86. NVIDIA then recovered and formed a right shoulder around the $202.18 level. The neckline of the pattern lies at $212.50.

Currently, NVIDIA is trading at approximately $206.93, meaning the share is still just below that crucial neckline. Only when an hourly candle closes above $212.50 does the analyst consider the breakout confirmed. Until then, the pattern technically remains unconfirmed.

Price target around $230 on confirmed breakout

If the breakout above $212.50 does occur, @alicharts sees room towards roughly $230. On the chart, further resistance levels are visible at $225.24, $228.71 and $233.12. These levels may act as intermediate resistance along the way, but the primary target on a successful breakout is around $230, according to the analyst.

This is not the first time technical analysts have spotted bullish patterns in the current market. An analysis of a bull flag on the Ethereum chart was also published earlier. Whether NVIDIA can actually achieve the breakout depends on broader market conditions and sentiment surrounding tech companies and AI.