Important points
Nvidia (NVDA) stock, a favorite among AI investors, is likely to remain in the spotlight on Tuesday after hitting a new all-time high yesterday.
The stock has nearly tripled since the beginning of the year, and most analysts believe there is room for further upside based on the company’s dominance in the AI chip market and insatiable demand for its next-generation Blackwell GPU architecture. There is.
Analysts tracked by Visible Alpha have a target price of $154.19 for the stock, up from $152.41 a week ago and down from Monday’s closing price of $143.71. % has increased.
Below, we analyze the technicals on NVIDIA’s weekly chart and identify key price levels that other investors may be watching.
Bullish price momentum continues
After reaching its previous all-time high in mid-June, Nvidia stock traded within a symmetrical triangle until a definitive breakout above the pattern earlier this month.
It’s also worth pointing out that the stock posted its highest volume since late September last week, although volume remains below its long-term average.
From a momentum perspective, the Relative Strength Index (RSI) is showing bullish price action, staying below overbought levels, suggesting there is plenty of room for stocks to rise. .
Looking ahead, let’s try to predict price targets in the stock’s current uptrend and find some key levels on Nvidia’s chart that could garner buying interest during the retracement.
Bullish price target
To guess where a stock’s current uptrend is headed, you can use bar patterns, a technique that studies previous trends to predict future directional movements.
When applying this analysis to Nvidia’s chart, we extract the uptrend from April to June and reposition it from the start of the stock’s current rise in early September. Such an approach suggests an upside price target of around $180, about 25% above Monday’s closing price.
We selected this previous trend, which started with an increase of about 15% on the weekly chart, similar to the start of the current stock price rally.
Important support levels to monitor
During a downturn, investors should first focus on the $125 level. This level is the position on the chart where the stock is likely to encounter support near the breakout area of the symmetrical triangle pattern.
If the stock falls below this level, the stock could fall to around $97. Investors may view this area near the March peak and 50-week moving average as a buying opportunity.
Finally, a bearish reversal in the stock price could trigger a fall to the $76 level, with bargain hunters likely looking for an entry point near the mid-April return low.
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As of the date this article was written, the author did not own any of the securities mentioned above.
