Nvidia shares have fallen for the fourth consecutive session, marking a technical correction with a 15% decline from last month’s record high. After reaching a peak, the stock has traded mostly sideways before dropping below the 50-day moving average late last week, signaling potential consolidation.
Investors are advised to monitor key support levels at around $115 and $102 on Nvidia’s chart, as well as resistance levels near $140 and $150. Despite the recent downturn, Nvidia’s stock has surged approximately 160% since the beginning of the year, significantly outperforming the S&P 500’s 27% return. This performance is attributed to the soaring demand for the company’s AI silicon.
Concerns over production delays due to reported overheating issues with Nvidia’s new Blackwell chips have prompted investors to seek further confirmation of the chipmaker’s ability to sell significant volumes. The stock closed Tuesday’s session down 1.2% at $130.39.
Technical analysis of Nvidia’s chart reveals important price levels to watch. After setting a record high in November, the stock traded sideways before falling below the 50-day moving average, indicating increased selling activity and weakening price momentum as the relative strength index (RSI) dipped below 50.
Key Support Levels:
– The initial level to watch is $115, near the 200-day moving average, where Nvidia bulls may step in, aligning with comparable price action from May to October.
– A breakdown below this level could lead to a revisit of support around $102, where investors may look for entry points near the low of a late-May breakaway gap and significant troughs in August and September. This area also aligns with a bars pattern projected target from June to August, overlaid from November’s all-time high.
Important Resistance Levels:
– If the stock regains upward momentum, the $140 level is crucial, with resistance near a horizontal line connecting the June swing high and similar price points from October to December.
As Nvidia’s stock continues to slide into correction territory, investors should watch specific price levels.
Further buying could potentially drive the stock price upwards to around $150. This is a significant area on the chart where investors might consider taking profits, especially near a cluster of candlesticks just below the stock’s record high, which was set late last month.
The comments, opinions, and analyses presented on solely for informational purposes. For more details, refer to our warranty and liability disclaimer.
As of the time this article was written, the author does not hold any of the securities mentioned above.