Nvidia (NVDA) shares slipped further into correction territory on Tuesday, marking the fourth consecutive day of losses as the stock retreated 15% from its record high reached last month.
Despite this pullback, analysts maintain an optimistic outlook for the chipmaker heading into 2025. The decline, however, reflects investor concerns over potential production delays linked to overheating issues with Nvidia’s new Blackwell chips, which were discovered last month. Investors are likely seeking more clarity on whether Nvidia can successfully ramp up production of these chips to meet surging demand.
Even with the recent downturn, Nvidia’s stock is still up an impressive 160% year-to-date, significantly outpacing the broader S&P 500, which has returned 27% during the same period. As of Tuesday’s close, the stock fell 1.2%, settling at $130.39.
This article takes a closer look at Nvidia’s chart and provides a technical analysis to identify key price levels that investors should watch in the coming days.
After hitting an all-time high in November, Nvidia’s stock entered a period of sideways trading before breaking below its 50-day moving average (MA) late last week. This technical development may signal further consolidation in the short term.
While trading volume remains below long-term averages, recent upticks in volume suggest an increase in selling pressure. Additionally, the relative strength index (RSI) has dipped below the neutral 50 level, indicating weakening momentum and increasing risk of further downside.
In the event of additional selling, investors should closely monitor the $115 price level. This zone is near the 200-day MA, a key technical level that could provide support. Historical price action between May and October further suggests that this area could attract buyers.
Should the stock break below this support zone, the next significant level to watch is around $102. This level aligns with a gap formed during the late-May sell-off and marks prominent troughs from August and September, where bulls may step in to purchase at a discount.
Interestingly, the $102 level also corresponds with a projected target based on a bars pattern derived from Nvidia’s June to August correction, when applied to the stock’s record high in November.
If Nvidia’s stock can regain its upward momentum, key resistance will likely emerge near $140. This level corresponds with a horizontal line drawn from the June swing high and is reinforced by multiple price points between October and December.
Further upside could lead to a potential resistance zone around $150, where the stock has faced pressure in the past, particularly just below its all-time high from last month. Investors looking to lock in profits may begin selling in this region, which could cap any bullish move.
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