- Nvidia’s post-earnings move could have been a false breakout, with the 70-session moving average as the post-earnings support level.
- Microsoft and Palantir remain in 70-session uptrends, but both have formed bearish RSI divergences that could signal deeper corrections.
- Nio is approaching major support around $3.70, while the S&P 500 could fall toward 7,520 if its current resistance holds.
US stocks are showing signs of weakness after a powerful run higher, but the current pullback still appears relatively contained. The key question is whether the correction remains a healthy pause within the broader uptrend or develops into something more significant.
Five US stocks stand out because their charts are approaching important technical levels. Nvidia, Microsoft, Palantir, Oracle and Nio each have different setups, but all five are at points where the next move could provide a clearer signal about their medium- and long-term direction.
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1. Nvidia’s Post-Earnings Rally May Have Been a False Breakout
Nvidia () remains one of the most important stocks to watch after its latest earnings report.
Before the results, two technical zones were identified as key. The first was the upside gap, with a sustained move above that area potentially opening the way toward new all-time highs. The second was the 70-session moving average, which had recently acted as an all-time.
Nvidia initially delivered the 70-session move investors were looking for. On Thursday, the stock jumped more than 8% and pushed into the gap zone, with the session closing above it.
The following session brought a very different picture. Nvidia fell more than 4.5%, moving back into the upside gap created during Thursday’s rally.
That leaves the stock in a potentially dangerous position. The failure to maintain the breakout could mean Thursday’s move was a false upside breakout rather than the beginning of another leg higher.
The key level now is the 70-session moving average. As long as Nvidia holds above it, the bullish structure can remain intact. A decisive break below it would be considerably more concerning.
The concern comes partly from the psychology of the move. Investors who bought Nvidia after the sharp post-earnings rally could now find themselves trapped at much higher prices. If the stock subsequently loses the 70-session average, those investors could begin selling, turning what initially appeared to be a bullish earnings reaction into a distribution move.
The hourly chart provides another level to monitor. Nvidia is currently holding above its 200-session extended moving average on that timeframe. That has previously acted as support, making it an important short-term line in the sand.
A break below the hourly 200 could therefore increase the probability of Nvidia eventually losing its 70-session moving average on the daily chart.
2. Microsoft’s Support Could Decide the Next Move
Microsoft () is showing a somewhat more constructive structure, although there are also warning signs. The stock rallied strongly following its results, corrected toward the $477 area and then rebounded. During that latest advance, however, a divergence developed between price and the RSI.
The RSI has remained above the 70 zone during the latest move, showing that the stock still has considerable momentum.
For now, the important task is to maintain the $477 support zone. If Microsoft continues consolidating above that level, the current sideways movement could simply give the 70-session moving average time to catch up with the price.
That moving average is already showing a clearly positive slope and has crossed above the 200-session moving average, which is generally considered a bullish signal.
A deeper correction toward the 70-session average therefore would not automatically damage the broader setup. If the average acts as support, Microsoft could use the pullback to build another base before attempting to reach fresh highs.
The situation changes considerably if the 70-session average itself breaks. Combined with the existing RSI divergence, that would suggest the latest rally is losing strength.
The longer-term chart reinforces the importance of this level. Microsoft previously experienced a strong correction after a divergence between price and RSI, but the stock respected the $370 area and subsequently rebounded sharply.
Now that Microsoft is back near its highs, the question is whether the current move is developing into a potential double top or whether the stock has enough strength to continue higher.
A successful defense of the 70-session average would favor the latter scenario. A break below it could instead extend the broader sideways pattern that has been developing since early 2024.
3. Palantir Has a Similar Warning Signal
Palantir () has a remarkably similar setup. The stock suffered a series of significant corrections from the end of last year, eventually falling toward approximately $110. From there, however, the recovery was spectacular.
The latest rally has taken Palantir back toward the highs reached at the end of 2025. Like Microsoft, the stock has also developed a divergence between price and RSI during this latest advance. Once again, the 70-session moving average is the key level.
The average has crossed above the 200-session moving average, which is a positive technical signal and typically supports the continuation of an uptrend for several weeks or even months.
A meaningful correction would therefore provide an important test. If Palantir falls but finds support at the 70-session average, the broader bullish structure could remain intact.
In that scenario, the stock could eventually attack the $200 area and potentially push the RSI back above 70.
The risk lies in a failure of that moving average. If the 70-session average breaks after recently crossing above the 200, it would suggest the bullish signal has failed.
That could lead to a much more significant decline and raise the possibility that the latest rally represented distribution rather than the beginning of another sustained vertical advance.
4. Oracle Needs to Hold $135
Oracle’s () setup is more fragile.
The stock has also endured a major correction since the end of last year and recently reached a crucial support area around the 70-session moving average and the $137 to $140 region.
That zone was particularly important because it coincided with support established at the beginning of last year.
Oracle subsequently rebounded from around $118, a level that had provided support in April 2025. However, the recovery has so far run into resistance at the 70-session moving average.
That is a warning sign.
When a stock has already experienced a substantial decline and reaches a level where buyers would ideally need to appear strongly, immediate resistance from the 70-session average suggests demand remains relatively weak.
For now, Oracle is holding above approximately $136, while $135 to $136 represents the critical short-term support zone.
A renewed break below $135 to $136 would increase the probability of a return to the bearish scenario and could confirm the head and shoulders formation that has been developing.
A more constructive outcome would require Oracle to break above the 70-session average and create enough distance from it for the moving average to regain a positive slope. A subsequent break above the 200-session moving average would provide an even stronger signal that a new uptrend is developing.
Until that happens, the technical picture remains cautious.
5. Nio Approaches a Crucial $3.70 Support
Nio () is a less frequently analyzed name, but its current technical setup is attracting attention because of a possible rounded bottom.
The monthly chart gives some indication of the pattern, while the weekly chart provides a clearer view. The declines around April 2025 could correspond with the midpoint of a potential rounded bottom that has been forming over a prolonged period.
Nio is now returning to a major support area around $3.70. That level becomes particularly important if the rounded bottom thesis is to remain valid. The stock needs to hold there and eventually produce a meaningful rebound.
The immediate problem is the strength of the recent decline. Nio fell approximately 4% in the previous session and another 4% in the latest session discussed. The RSI has also moved clearly below the 30 level, indicating significant downside momentum.
That oversold condition can create the potential for a rebound, but it also means the selling pressure remains strong.
The high trading volume accompanying the latest decline is especially interesting. Heavy volume early in a selloff can indicate strong selling pressure and further downside. Heavy volume near major support can carry a different message if the support subsequently holds, potentially signalling a transfer of shares from more speculative sellers to longer-term buyers. For now, however, there is no confirmed bullish signal on Nio.
The next sequence will be crucial. A rebound from around $3.70, followed by another correction that respects the same support and creates a bullish divergence, would strengthen the rounded bottom thesis. A subsequent break above the rebound high could then provide confirmation.
The potential pattern is also a very long-term one. A rounded bottom can take years to develop, and in Nio’s case the formation could already span roughly three years, dating back to late 2023. The major resistance level is around $7.16.
S&P 500 Could Test 7,520
The broader market is also showing signs of a relatively small correction. On the , a clear break below 19,800 could send the index toward its 70-session moving average around 19,425. Such a move would still qualify as a relatively normal correction similar to the decline seen during April and May, provided the moving average continues to act as support.
The hourly chart is already approaching a potentially negative signal, with the 70-session moving average close to crossing below the 200-session average.
On an hourly chart, that signal has a shorter implication than the same crossover on a daily chart. It could point to weakness lasting several sessions or perhaps one to two weeks, rather than several months.
The S&P 500 is also attempting a rebound, but the recovery has reached the area of the gap created during the previous session. On the hourly chart, the 70-session moving average is currently acting as resistance.
If the index manages to reclaim that average, the probability of continued upside and another attempt at the highs would increase. If resistance holds, the next area to watch is around 7,520, where the 70-session moving average and a former declining trendline converge.
The market’s broader risk gauge is currently providing little additional warning. The BX has also rebounded toward its 70-session moving average, where it encountered resistance, while the current S&P 500 rebound has kept the indicator relatively restrained. That suggests the market has yet to show a major spike in fear.
The Correction Could Create Opportunities, but Confirmation Matters
The common theme across these stocks is that technical levels are becoming increasingly important as the market moves through its current correction.
Nvidia needs to defend its 70-session moving average after a potentially false breakout. Microsoft and Palantir are still in stronger technical positions, but both need their moving averages to hold if their latest RSI divergences lead to deeper pullbacks.
Oracle remains more vulnerable unless it can reclaim its 70-session average, while Nio is approaching a major $3.70 support zone that could determine whether its potential rounded bottom remains valid.
For investors, the current environment calls for patience rather than reacting emotionally to every sharp move. A correction can create attractive entry points, but the key is waiting for price action to confirm that buyers are actually returning.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.