What you need to know
- The shares of AI-favorite Nvidia are likely to remain on the radar after Jensen Huang, CEO at Nvidia, gave a keynote speech last night in Las Vegas. He provided several key technology updates.
- Stocks broke above the trendline at the top of a channel descending on Friday. Bullish momentum continued into Monday trading ahead of Huang’s speech. Stocks hit record highs on Monday, and are gaining in today’s premarket.
- Investors should watch key overhead areas on Nvidia's chart around $150 and $225, while also monitoring major support levels near $140 and $130.
The shares of artificial intelligence (AI) favourite Nvidia will be in focus on Tuesday, after Jensen Huang gave several important updates to technology during his keynote speech at the CES 2025 Conference in Las Vegas last night.
During the event that was highly anticipated, Huang announced the next-generation AI gaming chip, introduced a technology which speeds up robot training, released the company’s first computer, and announced a contract with Japanese automaker Toyota (TM).
Nvidia just had another great year. The insatiable appetite for AI-based infrastructure pushed its stock prices up around 170%. These gains were made after the stock price of Nvidia increased by more than triple in 2023.
Nvidia’s shares have risen another 2.5% during recent premarket trades and are poised to reach a new intraday record today.
We examine Nvidia’s chart in detail and use technical analysis to determine key price levels that investors should be watching to see how they react to Huang’s CES announcement.
Trade Volumes and Descending-Channel Breakout in Focus
Nvidia stocks broke above the top trendline in a downward channel on Friday. Bullish momentum continues into Monday’s trading session before Huang’s keynote presentation.
Although the stock closed at a record high, it was significantly lower than its intraday top, creating a “shooting star”, a candlestick that could indicate an upcoming reversal.
In the future, investors will want to watch out for increased trading volumes, as this would be a sign of confidence behind recent purchasing. While share turnover reached its highest in over a week last Monday, it still remains below long-term averages. This suggests that large market participants are on the sidelines.
We’ll identify several important overhead areas on Nvidia chart, and we’ll also highlight two key support levels which may become more prominent during a retracement.
Keep an eye on the following areas:
Around $150 is the first area of interest. The price of the stock has been trading above this important level since November but has not closed above it.
The bars pattern can be used to project a possible price target over the all-time highest (ATH) of the stock. It works by extracting and repositioning the trend upwards from June to April last year. A similar analysis suggests a price target around $225, or about 50% more than Monday’s final closing price.
This trend began by following the lower trendline from an earlier channel that was descending on the graph, which is similar to how the current trend has begun.
Major Support Levels that You Should Observe
Investors should first watch for pullbacks at the level of $140. If you don’t want to chase the breakout, look at the entry point near the top of the trendline in the descending channel. It is located close to the June high.
The bulls may not be able to protect this zone, and Nvidia could retrace its shares to about $130. Near the August high swing and the December low swing, Nvidia might find some support.
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According to the article, as of its date of publication, the author did not possess any of these securities.
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