Watch These Nvidia Price Levels as Stock Slips Further Into Correction Territory

Nvidia (NVDA) shares fell for the fourth straight session on Tuesday, extending their slide right into a technical correction because the inventory is down 15% from final month’s file excessive.

While analysts stay bullish on the corporate’s prospects heading into 2025, traders could also be wanting additional affirmation that the chipmaker can promote important volumes of its new Blackwell chips after the reported discovery of overheating points final month prompted considerations over manufacturing delays.

Depsite its latest droop, the inventory continues to be up about 160% for the reason that begin of the yr, far outpacing the S&P 500’s 27% return over the interval, amid booming demand for the corporate’s AI silicon.

The inventory fell 1.2% to shut Tuesday’s session at $130.39.

Below, we take nearer have a look at the AI chipmaker’s chart and use technical evaluation to establish essential worth ranges to be careful for.

50-Day Moving Average Breakdown

After setting a file excessive in November, Nvidia shares traded principally sideways earlier than falling beneath the 50-day shifting common (MA) late final week, doubtlessly setting the stage for additional consolidation.

While inventory quantity stays beneath longer-term averages, it has edged up in latest buying and selling classes, pointing to a rise in promoting exercise. Moreover, the relative energy index (RSI) has slipped beneath 50, confirming weakening worth momentum.

Let’s flip to Nvidia’s chart to establish a number of key assist and resistance ranges that traders could also be monitoring.

Key Support Levels to Watch

Upon additional promoting, traders ought to initially regulate the $115 stage. Nvidia bulls could step as much as the plate on this space close to the 200-day MA, which additionally intently aligns with a spread of comparable worth motion on the chart between May and October.

A breakdown beneath this essential technical space may see the shares revisit decrease assist round $102, a location on the chart the place traders could search entry factors close to the low of a late-May breakaway hole and distinguished troughs that fashioned in August and September. 

Interestingly, this area additionally roughly matches a bars sample projected goal that takes the inventory’s June to August correction and overlays it from November’s all-time excessive (ATH).

Important Resistance Levels to Monitor

If the inventory regains its upward momentum, it’s price monitoring the way it responds to the $140 stage. The shares could encounter resistance on this space close to a horizontal line that hyperlinks the June swing excessive with a sequence of comparable worth factors between October and December.

Finally, additional shopping for may propel a bullish transfer to round $150, a area on the chart the place traders may resolve to lock in income close to a cluster of candlesticks positioned just under the inventory’s file excessive set late final month.

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As of the date this text was written, the writer doesn’t personal any of the above securities.