Nvidia price levels to watch after recent fluctuations in stock price

The stock price rose nearly 16% last week.

Key Takeaways

• Shares of NVIDIA, a among AI investors, surged last week as investors bought up recent losses, so the stock is likely to remain on the watch list on Monday.

• The stock is rising towards the upper trendline of the descending channel, but this move is occurring amidst weak trading volumes, indicating a lack of institutional activity.

• Investors should monitor the key overhead price levels on Nvidia’s charts at $126, $136, and $166, as well as key lower price levels at $97 and $75.

NVIDIA (NVDA) stock is likely to remain on the watch list beyond Monday. Artificial Intelligence (AI)Last week, investors Immersion in stock Favorable Wall Street Commentary This represents an opportunity for continued growth amid insatiable demand for AI infrastructure.

Shares of the AI ​​chipmaker rose about 16% last week after falling about 23% from late August to early September as investor optimism about AI waned following the company’s announcement. Reports slowing quarterly growthMarket sentiment has picked up recently despite the company beating analysts’ profit and revenue expectations, but it’s also been hit hard by a Bernstein analyst calling NVIDIA “the best way to harness AI” and a Bank of America analyst earlier this month reporting a recent Pull back “Expanding purchasing opportunities.”

Below, we take a closer look at Nvidia’s chart: Technical Analysis Identify important price levels to watch after recent stock price movements.

The stock is trading inside a descending channel

Since hitting an all-time high in late June, Nvidia shares have Descending ChannelA chart pattern consisting of two parallel downward trendlines that indicate a downward trend in a stock price.

Recently, the price has been moving towards the upper trendline of the channel, 50-day moving average (MA) In the process.

But like the August rally, stock prices’ recent gains have come in lackluster conditions. volumepointed out the lack of participation of Institutional InvestorsThe stock rose 15.8% last week, closing at $119.10 on Friday.

Overhead price levels to monitor

The first key area to watch on the chart is near the $126 mark, where the stock is trading at resistance Near the upper trendline of the descending channel. It is also worth noting the increasing volume at this level, which could be a sign of an impending upswing. happen On top of the pattern.

If a breakout does occur, investors should look to the $136 area, where sellers may be more likely to buy. Lock in your profits This is close to the all-time high the stock price reached on June 18. It also roughly matches the closing price in mid-July. Swing High.

The story continues

To predict Target Price Outperforming Nvidia All-time high (ATH),we Measurement principleTo do this, calculate the distance between the two trendlines of the descending channel and add that value to the upper trendline of the pattern. For example, adding $40 to $126 would give us a projected upside target of $166.

Remarkable low price levels

If Nvidia stock falls from current levels, investors should keep an eye on whether the stock could trade lower near the $97 mark. support Nearby Horizon Connecting March Twin peak A series of similar trading levels are located near last month’s lows.

If the selling continues, break below the lower trendline of the channel 200-day moving average That could push the stock back up to around $75, a spot on the charts that likely attracts bargain hunters near the mid-February highs and April troughs.

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At the time of writing, the author does not hold any positions in any of the securities mentioned.

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