Key takeout
NVIDIA (NVDA) shares are on their watch list to win AI’s favorite gear after Wednesday’s closing bell.
The chip-making giant, which has a track record of blowing Wall Street expectations amid in the insatiable demand for the AI silicon lineup, reported a 73% jump in revenue for the previous year, with net profit of 21 billion yen. It is projected to be $800 billion. Starting from $12.84 billion.
Nvidia has flattened annual trade, but as of the end of Friday it has scored 12% this month, with analysts continuing to increase spending on AI infrastructure, making analysts widespread in chip makers stocks I’m leaving behind bullishness. Amid a wider sales on Wall Street, shares fell 4.1% to $134.43 on Friday.
Below, we take a closer look at Nvidia’s charts and use technical analysis to identify key pricing levels that are worth paying attention to.
Downward Channel Stock Trading
Nvidia’s stock has been consolidated on a descending channel since mid-December, with trading volumes declining over that period.
Recently, the bearish encirclement pattern formed on the charts on Friday, showing lower potential movements than chipmakers’ results. Interestingly, this same candlestick pattern has appeared on two other occasions since the stock was set record in early January.
Meanwhile, the relative strength index (RSI) mimics the price, indicating that it has been holding back momentum by lower highs since the start of the downward channel.
Identify some important support and resistance levels on Nvidia charts that investors may be looking at.
Important support levels to monitor
The first lower level of the eye is about $130. The stock can be found support in this area near the trend line that links the trend line with the prominent August peaks formed on the charts in December and January.
Sold under this location could reduce your stock to a $113 level. Investors can look for purchase opportunities in this area near the fall in swing this month. This area is also just above the predicted bar pattern target, which lowers stock movement in late January and rearranges from the top trend line of the descending channel.
The more significant post-revenue decline in NVIDIA stocks could exceed the $102 level. This could result in stocks coming up with support near the opening price in late May, and stocks coming up with a series of prices located around August and September. Low price.
Important resistance levels to monitor
If you break out above the top trendlines of a descending channel, the stock may first attempt another attempt at the $153 level. This area on the chart could provide overhead resistance near the all-time high (ATH) of stock.
Finally, investors can predict bullish targets above ATH by using measured mobility techniques, also known as measurement principles.
To apply the analysis, calculate the width of the point’s descending channel and add that amount to the top trend line of the pattern. For example, add $32 to $142. This predicts a $174 target. This is where investors can decide to lock their profits by 30% above the Friday closing price.
Any comments, opinions and analysis expressed on Investopedia are for informational purposes only. Read the Warranty and Liability Disclaimer for more information.
As of the date this article was written, the author does not own the above securities.
