Key takeout
- Nvidia’s stock dipped on Thursday morning, despite other AI chipmakers and investor favorites reporting better-than-expected revenue and profits.
- Having reached an all-time high earlier this month, Nvidia’s shares have mostly been trading sideways, which reflects general uncertainty among market participants as they await the company’s quarterly results.
- Investors should keep an eye on critical support levels at $174, $159, and $150, as well as watch for resistance near $183 on Nvidia’s charts.
Nvidia (NVDA) saw a decline on Thursday morning, even while other AI chip producers were posting revenue and profit numbers that exceeded analyst predictions.
The results released late Wednesday came in slightly better than anticipated, yet sales in the data center segment, which is crucial for the company’s revenues, fell just short of Wall Street’s expectations. There’s a current concern about chip sales to China, especially amid doubts over the resumption of exports to that market, which has left some investors feeling let down. Now, many are hoping Nvidia’s figures and guidance will consistently outperform predictions.
Nvidia’s shares slipped by 1.5% to around $179 during noon trading. Interestingly, despite this, the stock has surged 35% since the beginning of the year, making it a standout performer among the large-cap technology group.
Let’s dive a bit deeper into Nvidia’s charts and look at key pricing levels that might catch investors’ attention.
Lateral price action after recent highs
Following the all-time high reached earlier this month, Nvidia shares have been mostly moving sideways, signaling some uncertainty as market participants await the upcoming quarterly results.
The relative strength index has remained bullish but has been steadily declining since hitting its peak in mid-July, suggesting a weakening in buying momentum.
It’s important to identify key support levels, while also paying attention to significant overhead areas when considering stock movements.
Important support levels to monitor
Initially, the stock is set to test key support around $174. This area could draw buying interest, particularly given the peak from mid-July, coupled with the recent slight setback.
Beneath this level, support could possibly be found at $159. Investors might look for entry points near the June high, particularly following a brief two-day drop before the stock’s upward trend resumed.
Further declines could take the stock down to the key $150 level. This area may face multiple resistance points, marked by peaks established on the charts between November and January.
What’s intriguing is that this level aligns closely with the target for a lower bar pattern, which indicates movement potential following the chipmaker’s third-quarter earnings in 2024, suggesting a significant drop from recent highs. This analysis could offer insights into how similar post-earnings scenarios might unfold.
Notable important overhead areas
If Nvidia shares can regain long-term upward momentum, the $183 area will be crucial. This spot on the chart could see a lot of action as it sits just below where the stock traded at its record highs.
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As of the date this article was prepared, there were no securities owned by the writer mentioned above.
