Takeaways
- Nvidia shares slid Tuesday as CEO Jensen Huang gave a highly anticipated keynote address at the AI chipmaker's GTC conference.
- After reaching a record high of $1,050 in January, the stock traded within a downward channel, possibly undergoing a phase of consolidation before resuming a longer-term upward trend.
- Investors should monitor key support levels on Nvidia's chart around $96 and $76, while also tracking important resistance levels near $132 and $150.
- Bars pattern analysis, which takes the bars that comprise the stock's trending move from October 2023 to March last year and overlays them from this month’s low, predicts a potential upside price target of around $325.
Nvidia’s (NVDA) stock fell Tuesday after CEO Jensen Huang delivered a keynote speech at the AI chipmaker GTC conference.
Huang presented the roadmap of the company for the next two year, including updates on the Blackwell and Rubin next-generation chips. He also showcased cutting-edge AI technology for robotics and telecoms. Huang also announced a partnership with General Motors to train AI manufacturing model.
The flurry of announcements wasn't enough to lift investor spirits. Nvidia shares were down 1% before the CEO began speaking. They closed the day 3.4% below that at $115.43. Investors will be looking for more updates from Nvidia during the conference in the following days.
Nvidia shares are under pressure after several years of explosive growth driven by the insatiable demand of the company’s AI offerings. The stock is down 14% from the beginning of the year amid concerns over overspending on AI Infrastructure and uncertainty regarding the Trump administration’s policies in regards to tariffs and chip imports.
Take a look at Nvidia’s chart for the week and use technical analyses to pinpoint key price levels.
Descending Channel Consolidation
Since reaching a record-high in January, Nvidia has traded within a downward channel, possibly undergoing a phase of consolidation before resuming its longer-term uptrend.
Since then, the price action has been lackluster. The relative strength index (RSI), which measures momentum, is below the 50-point threshold.
We’ll identify the key support and resistance areas on Nvidia’s chart that investors might be monitoring, and project an upward price target to track in case the stock resumes a longer-term upward trend.
Key Support Levels Monitor
A breakdown under the lower trendline in the descending arc could cause the shares to drop as low as $96. This area would likely provide support around the March peak and August trough of last year.
A more significant decline could see the stock price return to its lower support at $76. Investors might look for entry points in this area near the low of the four-week pullback that occurred in the stock during April.
Important Resistance Levels To Watch
The current price level could lead to a move upwards of around $132. This location may provide overhead resistance close to a horizontal dividing line that links several comparable price points in the chart between June 2016 and February 2017.
The next level of resistance to watch is the key $150 level. Investors who purchased the stock earlier may be looking to lock in their profits in this area, near a series peak located just below its record high.
Track the Upside Price Target
Investors can use bars pattern analysis to project a possible longer-term target price to track if a stock resumes its upward trend. This method analyzes previous trends to predict future prices.
This technique is applied to Nvidia’s chart by overlaying the bars that make up the trending movement from October 2023 until March last year. The analysis suggests a potential price target of about $325, if a similar trend played out. This prior trend was chosen because it followed a similar pattern of consolidation on the chart.
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