Important points
Artificial intelligence (AI) darling Nvidia (NVDA)’s Stocks will remain in focus on Tuesday.
At the highly-anticipated event, Huang unveiled the next generation of AI-powered gaming chips, introduced technology to speed up robot training, launched the chipmaker’s first desktop computer, and announced that Japanese automaker Toyota (TM) announced a contract with.
Nvidia is coming off another great year, with its stock up about 170% on insatiable demand for AI infrastructure. These increases more than tripled in 2023.
Nvidia stock, which hit a closing high of $149.43 on Monday, rose another 2.5% in recent pre-market trading and is poised to hit a new intraday high today.
Below, we take a closer look at Nvidia’s chart and apply technical analysis to identify key price levels worth watching as investors react to Huang’s CES update.
Downward channel breakout, trading volume attracts attention
Nvidia stock broke above the highest trend line of the descending channel on Friday, and the bullish momentum continued into Monday’s trading session ahead of Huang’s presentation.
Yesterday, stocks hit a closing high, but the closing price was well below the intraday high, forming a shooting star, a candlestick pattern that indicates a possible reversal.
Looking ahead, investors should keep an eye out for an increase in trading volume, which could be a sign of confidence in the recent buys. Stock trading value hit its highest level in more than a week on Monday, but remains below its long-term average, suggesting large market participants remain cautious.
Let’s identify some key overhead areas to watch on Nvidia’s chart, and also point out two key support levels that could be a focus during a retracement.
Important overhead areas to be aware of
The first direct head area to look at is about $150. Since early November, the price has traded above this key level several times, but has failed to definitively close above this level.
To predict the potential target price above a stock’s all-time high (ATH), you can use the bar pattern tool. This works by extracting the uptrend from April to June of last year and repositioning it from last month’s low. Based on this analysis, the target price is expected to be around $225, about 50% above Monday’s closing price.
We chose the previous trend because it started from the lower trend line of the previous descending channel on the chart and closely replicates how the current uptrend started.
Key support levels to observe
During the pullback, investors should initially focus on the $140 level. Those who don’t want to chase a breakout may look for an entry point in this area near the top trend line of the descending channel, which also roughly coincides with the stock’s notable June peak.
Finally, with the bulls unable to defend this area, NVIDIA stock could fall back to around $130, with support likely on the chart near the August swing high and December swing low. There is.
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