Nvidia’s stock price levels are on the rise despite the continued slump for AI favorites


This image depicts the NVDA chart.
Source: TradingView.com.

What you need to know

  • Nvidia shares fell Monday after the Trump administration said over the weekend it would impose tariffs, adding to steep losses for the stock that were fueled by concerns related to Chinese startup DeepSeek's low-cost AI model.
  • Nvidia’s stock fell last week below a rising wedge pattern that lasted seven months, on the largest trading volume since 2023. It is likely there was institutional selling.
  • Investors should watch key support levels on Nvidia's chart around $96, $76, and $50, while also monitoring important resistance levels near $130 and $150.

Nvidia’s (NVDA’s) stock fell on Monday, after Trump announced over the weekend that it will impose tariffs against major trading partners. This follows the steep declines in the previous week due to concerns about DeepSeek’s AI low-cost model.

The tariffs, which impose 25% levies on Mexican and most Canadian imports, and 10% on all goods from China, have prompted concerns of a broader global trade war that could see countries introduce counter measures on items, including American AI chips.

Nvidia stock was down around 2% in late Monday trading, at $117. It had dropped 16% in last week’s trade following DeepSeek success. This sparked fears that Big Tech would no longer invest in Nvidia chipmaker’s high-priced AI products.

Nvidia’s shares are down nearly 25% since they hit a new record in January, but still have a gain of about 80% for the last 12 months.

We zoom in on Nvidia’s weekly chart below to highlight key price levels for the longer term.

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The Rising Wedge Breakdown

Nvidia’s stock fell last week below a rising wedge pattern that lasted seven months, on the largest trading volume since 2023. It is likely there was institutional selling.

Moreover, relative strength (RSI), which measures the market’s overall performance, fell below 50 to reach its lowest point since December 20, confirming a growing selling trend.

Let’s examine the key resistance and support levels for investors to watch as market volatility increases.

Keep an eye on the Key Support Levels

Nvidia’s shares could fall as low as $96, which is a level on the chart near their March high and August low.

Watch out for the $76 level as it is the second lower support. This area is a good place to look for buying opportunities near the low of April that was formed at the end the strong trending phase between October 2022 and last June.

Close below this area opens up the possibility of a larger correction, possibly down to the psychologically important $50 mark. Shares may find support near the 200-period MA which is also aligned with August 2023 and November’s stock peaks.

Watch for important Resistance Levels

Investors who are anticipating a rebound should first monitor the level of $130, where there could be selling pressure at the top and bottom in August 2024.

Nvidia’s shares could reach $150 again if investors continue to buy. Investors looking to secure profits could target a number of price points just below the record high.

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According to the article, as of its date of publication, the author did not hold any of these securities.

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leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

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