Last Updated on 04/09/2026
- Nvidia’s post-earnings surge may have turned into a false breakout, making the 70-session moving average a critical support level.
- Microsoft and Palantir remain in established 70-session uptrends, but bearish RSI divergences could point to further downside.
- Nio is nearing major support around $3.70, while the S&P 500 could retreat toward 7,520 if current resistance remains intact.
US equities are showing signs of weakness following a strong rally, although the current pullback remains relatively contained. The main question now is whether this decline represents a healthy pause within the broader uptrend or the beginning of a deeper correction.
Five stocks stand out as their charts approach important technical levels: Nvidia, Microsoft, Palantir, Oracle and Nio. Each has a different setup, but all five are reaching points where the next price move could offer a clearer indication of their medium- and long-term direction.
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1. Nvidia’s Post-Earnings Surge Could Be a False Breakout
Nvidia (NASDAQ: NVDA) remains one of the key stocks to monitor following its latest earnings release.
Ahead of the results, two technical areas were considered particularly important. The first was the upside gap, with a sustained move above this zone potentially paving the way toward fresh record highs. The second was the 70-session moving average, which had recently provided important support.
Nvidia initially delivered the bullish move investors were watching for. On Thursday, shares jumped more than 8% and moved into the gap area, eventually closing above it.
The following session, however, painted a very different picture. Nvidia dropped more than 4.5%, falling back into the upside gap created during Thursday’s rally.
This raises the possibility that the previous session’s breakout was a false move rather than the beginning of another sustained advance.
The 70-session moving average is now the key level to watch. As long as Nvidia remains above this average, its broader bullish structure can remain intact. A decisive move below it, however, would represent a more serious technical warning.
The psychology surrounding the recent rally is also worth considering. Investors who entered after Nvidia’s sharp post-earnings surge may now be holding positions at significantly higher prices. If the stock subsequently breaks below its 70-session average, those traders could begin closing positions, potentially turning the failed breakout into a broader distribution phase.
The hourly chart provides another important short-term reference point. Nvidia is currently trading above its 200-session extended moving average, which has previously acted as support.
A break below that hourly average could therefore increase the risk of a deeper decline and eventually put the daily 70-session moving average under pressure.
2. Microsoft’s Support Level Could Determine Its Next Direction
Microsoft (NASDAQ: MSFT) continues to display a relatively constructive technical structure, although some warning signals have emerged.
The stock rallied strongly after its results before pulling back toward the $477 area and subsequently recovering. During the latest advance, however, price action and the RSI began to diverge.
The RSI has remained above 70 during the recent rally, highlighting the strength of the underlying momentum.
For now, the key level is the $477 support area. If Microsoft can continue consolidating above this zone, the sideways movement could simply allow the 70-session moving average to catch up with the share price.
That moving average continues to slope upward and has already moved above the 200-session average, generally viewed as a bullish technical development.
A correction toward the 70-session average would therefore not necessarily invalidate the broader uptrend. If buyers defend the average, Microsoft could use the pullback to establish another base before making another attempt at record highs.
The technical picture would become more concerning if the 70-session average fails. Combined with the existing bearish RSI divergence, such a break could indicate that the latest rally is losing momentum.
Microsoft’s longer-term chart also highlights the significance of this area. The stock previously experienced a substantial correction following a price-RSI divergence, but ultimately found support around $370 before staging a strong recovery.
With Microsoft once again trading near its highs, the key question is whether the current structure is developing into a potential double top or simply another consolidation phase before an eventual breakout.
Holding the 70-session average would favor the bullish scenario. A break below it could instead prolong the broader sideways pattern that has been developing since early 2024.
3. Palantir Shows a Similar Bearish Warning
Palantir (NASDAQ: PLTR) is displaying a technical setup that closely resembles Microsoft’s.
The stock experienced several major corrections toward the end of last year before eventually falling toward roughly $110. From that point, however, Palantir staged an impressive recovery.
The latest rally has carried the stock back toward the highs recorded at the end of 2025. Yet, similar to Microsoft, Palantir has developed a bearish divergence between price and RSI during this advance.
Once again, the 70-session moving average is the level that could determine what happens next.
The average has crossed above the 200-session moving average, providing a positive technical signal that typically supports the continuation of an uptrend over the coming weeks or months.
A correction would therefore not necessarily be bearish by itself. If Palantir pulls back and finds support at the 70-session average, the broader bullish structure could remain intact.
Under that scenario, the stock could eventually retest the $200 area, with a renewed move in the RSI above 70 potentially confirming a return of strong momentum.
The risk increases significantly if the 70-session average breaks. A failure of the average shortly after its bullish crossover with the 200-session line could indicate that the positive signal has failed.
That could trigger a substantially deeper correction and raise the possibility that the latest rally was more of a distribution phase than the start of another sustained advance.
4. Oracle Needs to Defend the $135-$136 Area
Oracle (NYSE: ORCL) currently has a more fragile technical setup than Microsoft or Palantir.
The stock has undergone a significant correction since the end of last year and recently moved into an important support region around the 70-session moving average and the $137-$140 area.
This zone is particularly significant because it also corresponds with support established early last year.
Oracle subsequently bounced from around $118, another level that had previously provided support in April 2025. However, the recovery has so far encountered resistance at the 70-session moving average.
That represents a warning sign.
When a stock has already suffered a substantial decline, investors would generally want to see strong buying interest emerge around major support. The fact that Oracle is instead encountering resistance at the 70-session average suggests demand remains relatively weak.
For now, the stock is holding above roughly $136, while the $135-$136 region represents the key short-term support zone.
A renewed break below $135-$136 would increase the risk of another leg lower and could strengthen the case for the potential head-and-shoulders pattern that has been developing.
A more bullish scenario would require Oracle to reclaim the 70-session moving average and move sufficiently above it for the average to regain a positive slope.
A subsequent move above the 200-session moving average would provide an even stronger indication that a new uptrend could be forming.
Until those conditions are met, Oracle’s technical outlook remains cautious.
5. Nio Is Approaching Major $3.70 Support
Nio (NYSE: NIO) may receive less attention than some of the other names on the list, but its current chart is becoming increasingly interesting because of a potential rounded-bottom formation.
The monthly chart offers some evidence of this structure, while the weekly timeframe provides a clearer picture. The decline around April 2025 could represent the midpoint of a rounded bottom that has been developing over an extended period.
Nio is now approaching an important support zone around $3.70. This level is crucial if the rounded-bottom thesis is to remain valid. The stock would need to hold this area and eventually generate a meaningful rebound.
The immediate concern is the strength of the recent selling. Nio declined roughly 4% in the previous session and another 4% in the latest move under discussion.
The RSI has also fallen well below 30, indicating significant downside momentum.
While an oversold RSI can create the conditions for a rebound, it does not by itself confirm that selling pressure has ended.
Trading volume is another factor worth watching. Heavy volume during an early-stage selloff can signal continued distribution and additional downside. However, heavy volume around major support can have a different implication if the price subsequently stabilizes, potentially indicating that shares are moving from short-term sellers to longer-term buyers.
At this stage, however, Nio has yet to produce a confirmed bullish signal.
The next sequence of price action will therefore be critical. A rebound from around $3.70, followed by another pullback that successfully holds the same support and produces a bullish RSI divergence, would strengthen the rounded-bottom thesis.
A subsequent break above the rebound high could then provide confirmation of the pattern.
Because rounded bottoms can take years to develop, this potential formation should be viewed from a long-term perspective. In Nio’s case, the structure could already extend back roughly three years to late 2023.
The major resistance level to watch is around $7.16.
S&P 500 Could Retreat Toward 7,520
The broader market is also showing signs of a relatively modest correction.
The S&P 500 is attempting to recover, but the rebound 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 odds of another move higher and a retest of the recent highs would improve.
If resistance continues to hold, however, the next important downside target is around 7,520, where the 70-session moving average converges with a former declining trendline.
The broader market’s risk gauge is not yet signaling a major increase in fear. The BX has also rebounded toward its 70-session moving average and encountered resistance there, while the S&P 500’s recovery has kept the indicator relatively subdued.
This suggests that, for now, the market has not entered a major fear-driven selloff.
The Pullback Could Create Opportunities, but Confirmation Is Key
The common theme across these stocks is the growing importance of technical support and resistance as the market moves through its current correction.
Nvidia needs to defend its 70-session moving average following what could prove to be a false breakout. Microsoft and Palantir remain in stronger technical positions, but both need to hold their respective moving averages if their bearish RSI divergences lead to deeper pullbacks.
Oracle remains more vulnerable unless it can reclaim its 70-session average, while Nio is approaching the critical $3.70 support zone that could determine whether its potential rounded-bottom formation remains valid.
For investors, the current environment favors patience over emotional reactions to short-term volatility.
A market correction can create attractive entry opportunities, but the most important factor is confirmation. Investors should look for evidence that buyers are actually returning before assuming that a decline has reached its bottom.
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