History says you should buy NVDA stock right now
Shares of Nvidia Corp (NASDAQ:NVDA) stock are inching 0.4% higher to trade at $211.72 this afternoon, taking a breather after five-straight losing sessions, including yesterday's AI-induced selloff of 3.4%. The equity is still up 13.3% in 2026, however, and a rebound could soon be on the way, per a historically bullish trendline.
According to Schaeffer's Senior Quantitative Analyst Rocky White, NVDA is trading within 0.75 times the 126-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline.
This setup has appeared 11 times over the last decade, after which the stock was higher one month later 82% of the time, averaging a 6.2% gain. From its current perch, a move of this caliber would put the equity just shy of $225.
NVDA sports a 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 83% of readings from the past year. Should this bearish sentiment begin to unwind, it could trigger a new round of tailwinds for the shares.
Options are looking affordable as well. The stock's Schaeffer's Volatility Index (SVI) of 34% stands higher than just 2% of all other readings from the past year. In other words, near-term option traders are pricing in low volatility expectations at the moment.