After a blissful period in which its stock price continued to rise, fueled by the artificial intelligence (AI) boom, Nvidia (NASDAQ: NVDA) shares have started to slow down, posting significant losses over the past few weeks and are now hovering in the “sweet spot” between two key price levels.
Specifically, according to an observation shared by market analytics platform TrendSpider in a Sept. 15 X post, Nvidia stock is currently “siting right in the sweet spot” between the 0.618 Fib retract level of $106.19, which is acting as strong support, and resistance at the previous high of $131.26.
In other words, investors should keep an eye on these two key price levels as well as the resistance at $90.69, where NVDA shares fell in early August, marking the year’s bottom for the semiconductor giant, but which is also a zone where buyers could enter the market.
Additionally, a chart shared by TrendSpider shows a spike in trading volume at the $106.19 level. This indicates high trading activity around this price, supporting the claim that this price represents solid support. Meanwhile, the decline in trading volume as the price rises suggests waning interest at higher levels.
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At the same time, Nvidia’s price action on this chart suggests a double bottom pattern that usually signals the end of a downtrend and the possible start of an uptrend, and this pattern will be confirmed if the stock price rises above the neckline, which is likely to happen in the near future.
Finally, the platform’s analysts have incorporated the Moving Average Convergence Divergence (MACD) indicator, which appears to be above its signal line, a bullish indicator along with the histogram turning green, suggesting that upward momentum for Nvidia stock is picking up.
Nvidia stock price history
Meanwhile, Nvidia shares were trading at $118.98 in the pre-market, which is above the key Fibonacci level of 0.618 as designated by TrendSpider, but according to data from September 16, the stock is down 0.11% on the day, up 11.20% in the past week, down 9.70% in the past month, and up 143.72% year-to-date.
All things considered, Nvidia stock appears to be in a sweet spot as it is trending up after finding support at the above-mentioned Fibonacci levels, and a breakout above the resistance at $131.26 could see further gains, supported by the positive momentum on the MACD indicator.
That said, stock market trends can easily and suddenly change, so if you’re investing significant amounts of money in any asset, it’s important to do your own research, carefully consider the risks, and stay on top of key trends.
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