Key Takeaways
- Nvidia shares fell nearly 9% last week as investors scaled back investments in some of this year’s best-performing AI chipmakers due to growing concerns about tightening trade restrictions and geopolitical risks.
- Nvidia shares have been in a long-term uptrend, but trading volume has declined since the stock price hit an all-time high last month, which could signal a slowdown in momentum or simply a pause in the trend.
- If it sustains above the $116 level, it could form the foundation for another trend leg up towards the $195 area based on a bar pattern that extracts the trend from April to June and applies it to this initial support area.
- Other key support levels on Nvidia’s charts include $97 and $75, and the stock could attract buying interest near a trendline connecting these key price points.
NVIDIA (NVDA) shares fell nearly 9% last week as investors scaled back their bets on this year’s best-performing stock. Artificial Intelligence (AI) Semiconductor manufacturers are facing growing concerns about tougher regulations. Trade Restrictions And geopolitical risks.
Below, we will look at AI’s darling technical Identify key price levels to watch for potential price increases Volatility.
Trading volume is declining
NVIDIA Stock for the Long Term Upward trendThe 50-day moving average (MA) is above the 200-day moving average. However, the AI chip maker’s stock price is All-time high last month.
The important thing is, Volume And after a monumental rise in stock prices fueled by insatiable corporate demand for the chips that underpin AI infrastructure, the stock has since trended lower, suggesting momentum is slowing or the trend may just have paused.
Focus on key price levels
Investors should keep an eye on a few key areas on Nvidia’s chart that could have an impact in the coming weeks.
The first level is near the $116 mark, and market participants will be watching to see if buyers can protect their short-term gains. Horizon This ties together a series of recent price movements with the 50-day moving average.
If the stock can hold this key area, it could form the basis for another trend uptrend to around $195, based on the bar pattern that extracted the April-June trend and applied it to this earlier period. support level.
a break A drop below $116 could open the door to a retest of the $97 levels, which could find support near the trendline connecting the two prominent price peaks in March and the period since. Integration Before the financial results announcement in late May gap.
Deeper Fixes The stock could fall to the $75 level, 36% below Friday’s closing price, attracting bargain hunters near the horizontal line that connects the pause in the January-March uptrend with the April uptrend. Swing low.
Investors are also Relative Strength Index (RSI)Once the indicator is reached, there is a high probability that Nvidia’s price will resume its long-term uptrend from the above levels. Oversold simultaneously fulfilling the conditions.
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