Important points
Shares of artificial intelligence (AI) chipmaker Nvidia (NVDA) will be in the spotlight ahead of CEO Jensen Huang’s presentation scheduled for next Monday at the Consumer Electronics Show in Las Vegas. Dew.
Investors will be watching for updates from Huang on sales forecasts for the company’s Blackwell chips, as well as details on NVIDIA’s Blackwell successor, Rubin, scheduled to launch in 2026. Several of Wall Street’s largest firms have named the AI giant a “top candidate” for 2025. He noted that strong demand for the Blackwell platform will fuel another year of explosive growth for the company.
NVIDIA stock rises as demand for NVIDIA’s silicon soars as big tech customers like Microsoft (MSFT), Meta (META) and Alphabet’s Google ramp up AI data centers and cloud computing infrastructure. ended 2024 with a 170% increase. Last year’s significant increase followed a 240% increase in 2023.
Below, we take a closer look at NVIDIA’s chart and use technical analysis to identify key price levels to watch in early January.
A descending channel takes shape
After hitting all-time highs in late November, NVIDIA stock has been trading in a descending channel, with the price moving along the upper and lower trend lines of the pattern several times since then.
Recently, the stock has encountered selling pressure near the channel’s top trendline and 50-day moving average (MA), a move that came on the heels of low stock turnover at the end of the year.
The Relative Strength Index (RSI) suggests that the stock will become slightly bearish in 2025, with this indicator falling below 50.
As the first quarter begins, let’s take a look at the key support and resistance levels on Nvidia’s chart that investors may be watching.
Key support levels to look out for
The first level to watch is around $130, a position on the chart where the stock could encounter support near the trend line connecting August’s notable swing high and December’s swing low.
A definitive close below this key technical level could cause the stock to break below the lower trendline of the descending channel and revisit the lower support near $115. This position, which is currently just below the rising 200-day moving average, is likely to attract buying interest near the horizontal line connecting comparable price ranges from May to October of last year.
Important resistance levels to monitor
If there is to be any upside from current levels, investors should first monitor the $140 area. The stock could encounter resistance in this region near the upper trendline of the descending channel, which also roughly coincides with the stock’s June 2024 high.
Buying above this level could send the stock price up to around $150. Investors who bought into the recent retracement may look to lock in profits in this area around the series of price moves that sit just below the stock’s all-time high.
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As of the date this article was written, the author did not own any of the securities mentioned above.
