Key takeout
NVIDIA (NVDA) stocks outperformed the other epic seven shares on Thursday after surged 6% in the previous session as investors are looking for opportunities for chipmaker dip viewing.
AI favourites have been under pressure since late January after the AI competition from China sparked fears of overexpenditure by the technology giant over the infrastructure Nvidia sells. More recently, tariffs, inflation flares and fears that export curbs could cut chip sales are also a concern, as well as emotional emphasis.
Yesterday’s bounce coincided with reports that along with Advanced Microdevices (AMD) and Broadcom (AVGO), chip makers were approached by Taiwan Semiconductor Manufacturing Company (TSM) to form a joint venture to own and execute Intel (INTC) Stock District.
On Thursday, Nvidia’s shares fell 0.1% to close at $115.58, but Mag 7’s counterpart fell sharply amid the broader sale, which was the first revised S&P 500 since 2023.
Below we take a closer look at NVIDIA’s charts and apply technical analysis to point out the key pricing levels that investors may be watching.
The downward channel becomes the shape
Since setting a record high in early January, Nvidia’s shares have been trading within the descending channel, with volume increasing in the second half of February.
More recently, stocks discovered purchases of purchases near the low trendlines of the channel, coinciding with an increase in the relative strength index (RSI) as the indicators return to neutral regions.
In the future, investors will need to monitor crosses of potential deaths as the 50-day moving average (MA) converges to 200-day MA.
Identify some important support and resistance levels that may affect your Nvidia charts during future price fluctuations.
Important level of support to monitor
The first key support level for the Watch is $105. Currently, the area is close to the lower trendlines on the downward channel, and may attract interest in purchasing near this month’s low and September’s trough.
Under this location, the stock can fall below the support of around $96. Investors may try to accumulate stocks in this area near Twin Peaks last March.
Important resistance levels to monitor
Moving higher is worth monitoring how stocks respond to the $130 level. This area may provide overhead sales pressure near the top trendlines, moving averages and some peaks and troughs of the downward channels on the charts dating back to June last year.
Finally, a further rise has led to Nvidia’s shares rising to around $153. Investors who buy at a lower price can seek the region’s exit points near some peaks just below the stock’s all-time highs.
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As of the date this article was written, the author does not own the above securities.
