Key takeout
NVIDIA (NVDA) stocks line up in Wednesday’s extension trading after AI investors’ favourites posted quarterly results that outperformed expectations and issued a strong outlook amid booming demand for advanced AI chips.
The company saw a revenue surge from the previous year to the fourth quarter at 78% to $39.33 billion. The company’s next-generation Blackwell chips accounts for almost 30% of net sales over the period. On that front, Nvidia’s CFO Colette Kress said the company expects to significantly increase Blackwell chip sales in the first quarter.
Executives also pointed out that they will use the company’s new chips to provide AI software and applications, expanding the current use of development and training AI.
Nvidia shares, which won nearly 4% during today’s regular trading session, remained flat almost the year until the end of Wednesday, but rose 67% over the past 12 months. After volving between profits and losses after the release of the quarterly report and during a conference call with company executives, the stock fell 1.5% to $129.32 in extended trading.
Below we take a closer look at Nvidia’s weekly charts and apply technical analysis to point out the key pricing levels that are worth paying attention to.
Advance revenue integration
After forming a bullish involving pattern on the 50th moving average, Nvidia’s stock moved higher the following week before entering the consolidation phase prior to chipmakers’ quarterly results.
Meanwhile, the relative strength index reads about 50, indicating neutral conditions, with a decline in trading volume in recent weeks suggesting that larger market participants remain on the sidelines ahead of today’s report.
Identify key support levels and overhead areas that investors may be tracking.
Important level of support to monitor
The support level near the first of the Watch is around $130. The area is just 1% below Wednesday’s closing price, and could potentially win a series of price ranges comparable to the charts between December and February, near trendlines that connect peaks in June, July and August.
This breakdown below the critical technology level can cause stocks to fall to the $113 level, a chart location where they may find support near the low bullish siege pattern.
More sales will open the door for a more important fix up to around $96, about 27% below the end of Wednesday. Such a drop can be seen as investors are looking for opportunities to buy near the prominent March Peak.
Important overhead areas to monitor
Post-revenue moves allow chipmaker stocks to revisit a key level of $153. Tactical traders who have accumulated stocks through the recent integration phase can look for exit points near the highs on the stock’s record.
Investors can use the bar pattern tool to predict the long-term overhead area they monitor. When you apply the analysis to an Nvidia chart, you will be able to move inventory from October 2023 to March last year, overlaying it from this month’s Low.
I chose this advance move. It also began following the formation of bullish siege patterns after a short period of integration, providing clues as to where new uptrends are heading if price action rhymes.
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As of the date this article was written, the author does not own the above securities.
