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GraniteShares 2x Short NVDA Daily ETF (NASDAQ:NVD) and GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL) were among Monday’s most actively traded ETFs as NVIDIA Corp. (NASDAQ:NVDA) came under renewed selling pressure following fresh controversy surrounding CEO Jensen Huang.

• NVIDIA stock is showing notable weakness. What’s behind NVDA decline?

NVD, which targets twice the inverse of Nvidia’s daily performance, gained approximately 12%, while NVDL, designed to deliver twice the stock’s daily return, fell by a similar magnitude.

The divergence highlights growing interest in leveraged ETFs as traders position for Nvidia’s next move amid uncertainty surrounding the chipmaker’s leadership and the broader AI trade.

Why Nvidia Stock Is Under Pressure

Nvidia shares slid after the company’s board announced an independent investigation into reports that Huang had been the target of a foreign intelligence operation.

In a Nov. 8 statement, Nvidia said an independent committee, assisted by outside counsel, would oversee the investigation. The board added that it had no reason to believe national security or proprietary information had been compromised.

The controversy follows reports concerning Huang’s relationship with a business executive allegedly linked to Chinese intelligence. China dismissed the allegations as groundless.

The developments have raised questions about potential implications for Nvidia’s business relationships and chip shipments to China.

NVD, NVDL Trading Activity Surges

The latest moves follow substantial turnover in both ETFs last week. NVD recorded approximately 121.2 million shares in trading volume on Nov. 6, following 127.7 million on Nov. 5 and nearly 159 million on Nov. 4.

NVDL traded approximately 15.6 million shares on Nov. 6, compared with 23.9 million on Nov. 5. NVD was trading 94 million shares on Monday.

Their recent price action also illustrates the risks of leveraged exposure. NVD gained 18.66% on Nov. 5 as Nvidia shares tumbled, while NVDL plunged 18.60%. The subsequent reversal demonstrated how quickly these products can change direction.

Resistance is anticipated around the $6 mark for NVD, where traders may begin to take profits or reassess their positions, according to Benzinga Pro. If the price can break through this resistance, it could pave the way for further gains, potentially testing levels closer to the 52-week high of $9.75.

For NVDL, support levels are now crucial to watch, with the recent low of $19.53 potentially acting as a floor. If this level fails to hold, further declines could be anticipated, leading to a test of even lower price points.

Resistance is likely to form around the previous support level near $21.53, which may now act as a barrier to recovery. A sustained move above this level would be necessary to signal a reversal in the current trend and restore some confidence among investors.

Is Nvidia Stock Approaching Oversold Territory?

Nvidia’s technical setup has deteriorated following the sell-off. Its Relative Strength Index (RSI) near 31.38, approaching the commonly watched oversold threshold of 30.

All 12 tracked moving-average indicators flashed sell signals, with the stock trading below its five-day, 10-day, 20-day, 50-day, 100-day and 200-day moving averages.

An oversold reading, however, does not guarantee an immediate rebound.

Broader Market Recovery Adds a Twist

Nvidia’s weakness contrasted with a broader U.S. equity recovery on Monday, as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite advanced.

Investors were also watching Tuesday’s October Consumer Price Index report for clues about Federal Reserve policy. Stronger-than-expected employment data had already raised concerns about a potential December rate hike.

For NVD and NVDL, the next catalyst will be whether Nvidia’s selling pressure persists or reverses. A continued decline could support NVD, while a rebound could quickly restore momentum in NVDL.

Both ETFs reset leverage daily, meaning their returns over multiple sessions can diverge significantly from twice Nvidia’s cumulative performance, particularly during volatile markets.

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