How RSI, MACD and Bollinger Bands Flagged NVIDIA's 20% Drop in Advance
NVIDIA's 14-day Relative Strength Index hit an extreme reading of 98.63 on April 20, 2026, a historically rare level for any large-cap stock, before the share price fell roughly 20% and the RSI collapsed to 32.97 by mid-June. Technical indicators such as RSI, MACD, the 50-day exponential moving average, and Bollinger Bands measure price momentum, trend direction, and volatility in a standardized way, though their signals are probabilistic rather than predictive. A DEV Community article uses two years of NVIDIA price history as a case study to demonstrate how these four indicators can be computed using the open-source Finance Toolkit Python library. The piece also documents notable earlier extremes, including an oversold RSI of 24.37 during the April 2025 US-China tariff shock and a sharp single-session bounce once a tariff pause was announced. Python code and Claude-compatible prompts are provided so readers can replicate the analysis with or without writing code directly.
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