Key takes
NVIDIA (NVDA) is a concern that a strong and expensive AI model developed by Chinese startup Deepseek may tell the reduction of Big Tech investment on expensive AI products by chip manufacturers. I broke through the shares that had plummeted.
In recent years, HyperScalers such as Microsoft (MSFT), Alphabet (Goog), and Amazon (Amzn) have enhanced the company’s AI platform to strengthen infrastructure to supply demand in emerging technology. We have spent billions of dollars to buy. With its spending, NVIDIA has become one of the most valuable companies in the world.
NVIDIA shares fell by 17 % on Monday to $ 118.58, reducing market capitalization by nearly $ 600 billion. Despite the sudden decrease, the stock has doubled almost doubled in the past 12 months, and more than eight times since Openai’s Chatgpt was released in November 2022.
In the following, look at the NVIDIA charts in detail, apply technical analysis, and identify important price levels worth watching after today’s defeat.
Rising wedge failure
NVIDIA’s shares may set a stage for a follow -through sales, lower than the 7 -month rising wedge on Monday, lower than the 200 -day moving average (MA).
Importantly, the sale on Monday has occurred in the best daily transactions since May, indicating important portfolios by large -scale market participants.
Pet out the three important support levels of the NVIDIA charts that the investors may be watching, and point out the important overhead areas that monitor upwards.
Important support level to monitor
First, it is worth tracking the $ 102 level. Stocks may encounter support in this area near the opening price in late May.
Below this level, the possibility that investors will fall by about $ 96, which is a chart location where investors can seek the opportunity to buy near the twin peak in March.
More important fixes of AI chip manufacturers can reduce the level of $ 76. The area is about 36 % below the closing price on Monday, and may attract bargain hunters who are trying to accumulate shares near the famous mid -April swing last year.
Important overhead area to monitor
During the restoration, investors need to monitor how the shares react to an area of $ 130. Returning to the 200 -day MA may lead to an important trend line re -testing that connects the peak in August and the trough formed on the chart in December and January.
Comments, opinions, and analysis expressed in INVESTOPEDIA are only for information provision. For more information, please read the guarantee and responsibility disclaimers.
At the date of this article, the author does not own the above securities.
