The Key Takeaways
- Nvidia shares will be the focus of attention next week, ahead of Jensen Huang’s presentation at the Consumer Electronics Show.
- Nvidia stock rose 170% by 2024 after soaring 240% the previous year. This was due to an exploding demand for AI chips.
- Nvidia has traded in a channel of descending price since late November when it hit its record high. Since then, the share price has been tagged by the pattern’s lower and upper trendlines.
- Investors should watch key support levels on Nvidia's chart around $130 and $115, while also monitoring important resistance levels near $140 and $150.
Nvidia’s (NVDA), a chipmaker that specializes in artificial intelligence, will have its shares in the spotlight next week at the Consumer Electronics Show.
Huang is expected to provide investors with updates about the Blackwell chip and Rubin, Blackwell’s successor that Nvidia intends to release in 2026. The AI giant has been named by several leading Wall Street firms as one of their top picks for 2025 “top pick,” It is worth mentioning that the strong demand of its Blackwell platform will allow for a second year of explosive expansion.
Nvidia shares closed out 2024 with a gain of 170% amid surging demand for its silicon as big tech customers—including Microsoft (MSFT), Meta (META) and Alphabet’s (GOOGL) Google—beefed up their AI datacenter and cloud computing infrastructure. This year’s huge gain followed on from a 240% jump in 2023.
We will use the technical analysis and Nvidia’s chart to determine key levels of price to be aware of in January.
Descending Channel Takes Shape
Nvidia has traded in a channel of descending price since late November when they set their all-time high. Since then, the share prices have tagged both the upper and the lower trendlines.
The stock has recently been under selling pressure, near its top trendline channel and the 50-day moving-average (MA), despite the fact that the end of year share volume was low.
If the relative strength indicator (RSI), which is below 50, falls below the threshold of 50, the price trend in 2025 will be slightly downward.
Here are the levels that may interest investors as they begin to look towards the start of Q1: key resistance and support levels.
The Key Support Levels To Watch
Around $130 is the first area to monitor. This level on the chart may be a place where shares could find support, near the trendline connecting the August high swing and the swing low in December.
The shares may break below the descending trendline if they close decisively under this technical level. They could then return to support levels around $115. This position, which is currently below the rising 200 day MA, will likely draw buying interest in proximity to a horizontal line linking a series of comparable price levels between May and Oct last year.
Monitoring important resistance levels
Investors will initially be watching the $140 region if prices move up from their current level. This region may be a resistance area for the shares near the descending trendline’s upper line, which coincides closely with the June 2024 stock peak.
If you buy above this point, the stock could rally to $150. Investors may want to take advantage of the current price movement near the previous high.
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