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Nvidia this week surged into the top position among the world’s most valuable companies by market capitalization, surpassing Apple.
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The stock has traded mostly sideways to higher on low trading volumes since breaking out from a symmetrical triangle last month as investors look for future catalysts that may drive the AI favorite’s next move.
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Investors should monitor key lower price levels on Nvidia’s chart around $144, $125 and $97, while watching an important higher level near $180.
Nvidia (NVDA) this week surged into the top position among the world’s most valuable companies by market capitalization, surpassing iPhone maker Apple (AAPL).
The AI chipmaker’s shares gained about 4% on Wednesday, hitting a record high of $146.49, as U.S. equities soared following the election of Donald Trump as president. Nvidia shares have risen nearly three-fold since the start of the year amid insatiable demand for the company’s family of AI chips, including its next generation Blackwell graphics processing units (GPUs).
Below, we analyze the technicals on Nvidia’s chart and identify important price levels that investors may be watching.
Since breaking out from a symmetrical triangle last month, Nvidia shares have traded mostly sideways to higher as investors look for future catalysts that may drive the AI favorite’s next move.
It’s worth pointing out that in recent months, the stock’s volume has tracked steadily lower, potentially indicating that larger market participants remained on the sidelines ahead of the US election and amid uncertainty over chip export curbs.
Looking ahead, investors should monitor for increasing share turnover while eyeing these important price levels on Nvidia’s chart.
The first lower level to watch sits at $144, an area on the chart just below Wednesday’s closing price where the shares may encounter support near a period of consolidation positioned around the prior all-time high (ATH).
Further selling could see Nvidia shares fall to around $125, an area on the chart where they currently find support near the closely watched 50-day moving average and symmetrical triangle’s upper trendline.
A breakdown below this level could see the stock fall to the $97 region. Investors may seek entry points at this location near a trendline joining two March peaks with a series of prices positioned around the early-August low.
To forecast a higher level using technical analysis, we can apply the measuring principle, often referred to as a measured move.
