TLDR
- NVDA stock continues its upward momentum, approaching the $200 target zone.
- Despite compressing earnings multiples, Nvidia’s price remains strong, indicating solid fundamentals.
- The stock’s price action forms a tightening flag setup, signaling a potential breakout.
- Pullbacks have respected an ascending support line, suggesting a consolidation phase.
- Momentum indicators such as RSI are neutral, supporting further price expansion.
Nvidia’s stock (NVDA) continues to impress with a steady push toward the $200 price point. As NVDA stock nears its target, the earnings multiple has steadily compressed, yet the bullish trend remains intact. Investors have closely monitored this gradual upward movement since early 2024, suggesting that the price surge is supported by fundamentals rather than speculative sentiment.
Weekly Chart Shows Strength Despite Multiple Compressions
Nvidia shares continue to trade near record highs on the weekly chart, holding the $190–$191 range. The stock has experienced a multi-month rally since early 2024, with price action consistently printing higher highs and higher lows. These moves have established a firm upward trend, despite the pullbacks that typically accompany such advances. The stock’s momentum remains strong, which has contributed to its continued success in the market.
While price gains remain intact, valuation metrics are showing a different trend. Nvidia’s earnings multiple, which stood at more than 150x in 2023, has gradually decreased to the mid-40x range. As the stock price has continued to rise, this decrease in the earnings multiple signifies that earnings growth has outpaced the valuation. Despite the compression of the multiple, NVDA stock has maintained strong price performance, signaling that the company’s fundamentals are firmly supporting the rally.
Tightening Flag Setup Indicates Potential Breakout for NVDA Stock
A closer look at the daily chart reveals a tightening flag formation that indicates a possible breakout. Nvidia’s price is trading within a rising trend, which has held since mid-2024, and pullbacks have respected an ascending support line. This behavior suggests that any downside attempts are quickly losing momentum, with the price continuing to consolidate rather than break lower. The flag pattern often signals a potential breakout once the resistance is cleared.
Every part of me says $NVDA is on a launch pad ready to go to $200 and beyond. And then very likely ATH's afterwards.
Chart showing a lot of resilience and is trying to breakout of the mini resistance line.
Give me $200 then $210.
Mark it. pic.twitter.com/KBP7a0qL5y
— Heisenberg (@Mr_Derivatives) January 27, 2026
A short, downward-sloping resistance line is holding back recent price advances. This level has capped higher moves, but the consistent pressure on the line suggests that demand remains strong at these levels. The pattern resembles a continuation setup, where the price consolidates before resuming the upward trend. Traders expect that a decisive break above this resistance could pave the way for further price gains toward the $200 level.
Momentum and Resistance Set Stage for a $200 Target
Momentum indicators, such as the RSI, are neutral to positive, avoiding overbought conditions while supporting potential further gains. This indicates that there is room for price expansion if the resistance gives way. Once Nvidia clears the downward-sloping resistance line, the path to the $200 price zone could open up. The $200 area stands as an initial psychological level, with traders eyeing the potential for fresh all-time highs if the trend continues to hold.
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