(SeaPRwire) – The market spent October in freefall. Nvidia closed the month down 10% at $204.64. It had just set a record close of $239.24 earlier in the month. That gap signals panic. ICAP’s chief strategist Walter Zimmerman called it out immediately. He warned of a “big, bearish, rising wedge” on the weekly chart. The setup suggested a sharp drop was coming. Traders watched the $204 level as the final floor. It broke. The technical structure collapsed before the fundamental story could catch up.
Here is the official data. Nvidia stock traded at $207.98 ahead of Monday’s open. That represents a 1.6% bounce. The company’s fundamentals remain strong. Revenue jumped 105.9% year-over-year to $96.22 billion in August. Earnings per share hit $2.22. It beat the $2.09 consensus. Wall Street still stands behind the stock. Fifty-four analysts rate it Strong Buy or Buy. One rates it Hold. The average price target sits at $321.47. Goldman Sachs reaffirmed its “Buy” rating on October 21.
Now look at the industry subtext. Zimmerman says the key weekly support line was “decisively broken.” He projects the next stop at $185.94. The 61.8% Fibonacci retracement lands at $92.99. That is a terrifying number. It was the trading level just nineteen months ago. “Valuations went to the outer solar system,” Zimmerman noted. Institutional money is already exiting. Central Bank & Trust Co. cut its stake by 2.2% in Q3. Insiders sold 1.77 million shares last quarter. That includes sales by CFO Colette Kress and EVP Timothy Teter. The buybacks cannot offset this exodus.
The supply chain is now decoupled from the hype cycle. Nvidia’s 50-day moving average sits at $221.74. The 200-day average is $204.24. The stock is trapped below both. The 12-month range runs from $164.27 to $243.37. A reversal above $197.73 is the only hope for bulls. Without that, the path is down. The market no longer prices Nvidia on earnings growth. It prices it on multiple compression. Hold the line at $185. If it breaks, the $92 target becomes a real risk. That is the end of the bull run.