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Nvidia shares fell for a fourth straight session on Tuesday, extending their decline into a technical correction as the stock is down 15% from last month’s record high.
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After hitting an all-time high, the stock traded mostly sideways before falling below its 50-day moving average late last week. This may pave the way for further consolidation.
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Investors should keep an eye on key support levels on the Nvidia chart around $115 and $102, while they should also keep an eye on key resistance levels around $140 and $150.
Nvidia (NVDA) shares fell for a fourth straight session on Tuesday, extending their decline into a technical correction as the stock is down 15% from last month’s record high.
While analysts remain optimistic about the company’s prospects heading into 2025, investors may want more confirmation that the chipmaker can sell significant volumes of its new Blackwell chips after the reported discovery of overheating problems last month sparked concerns about production delays.
Despite the recent slump, the stock is still up about 160% year-to-date, well above the S&P 500’s 27% return over the period, amid booming demand for its AI silicon of the company.
The stock fell 1.2% to close Tuesday’s session at $130.39.
Below, we take a closer look at the AI ​​chipmaker’s chart and use technical analysis to identify key price levels to pay attention to.
After hitting an all-time high in November, Nvidia shares traded largely sideways before falling below the 50-day moving average (MA) late last week, potentially paving the way for further consolidation.
While share volume is still below its long-term average, it has increased slightly in recent trading sessions, indicating an increase in selling activity. Moreover, the relative strength index (RSI) has fallen below 50, confirming weakening price momentum.
Let’s look at Nvidia’s chart to identify several key support and resistance levels that investors may be following.
For further selling, investors should initially keep an eye on the $115 level. Nvidia bulls could emerge in this area around the 200-day MA, which also closely matches a series of similar price action on the chart between May and October.
A breakout below this key technical area could see shares move back toward lower support around $102, a location on the chart where investors can look for entry points near the bottom of a late May breakout gap and prominent lows that formed in August and September.
Interestingly, this region also roughly corresponds to a projected target in the bar pattern, carrying the June to August correction from November’s all-time high (ATH).
