Watch these Nvidia stock price levels as AI Darling navigates market volatility

Shares are down 26% from their record close

Key Takeaways

• Nvidia shares rose in Tuesday’s premarket trading, a day after falling more than 6% amid a broad market sell-off and following reports that the company’s long-awaited Blackwell chips will be delayed for at least three months due to design flaws.

• Although the chipmaker’s share price recovered from Monday’s session lows to close above the key $97 support area, it remains precariously positioned roughly halfway between the 50 and 200 moving averages. days.

• Nvidia stock could find support around $75 and $51 but could encounter resistance near $116 and $136.

Nvidia (NVDA) shares gained ground in Tuesday’s premarket trading, a day after falling more than 6% amid a broad market decline and after reports that the Oh dear The long-awaited Blackwell chips will be delayed for at least three months due to design flaws.

Since hitting a record high on June 18, Nvidia shares have fallen 26% as investors cash in on chip stocks due to tightening concerns export restrictions with China and raised assessments driven by the AI ​​narrative that took hold on Wall Street following the launch of ChatGPT by OpenAI in November 2022.

Below, we analyze the Nvidia chart and point out the main support and resistance levels to watch as the company navigates continued market volatility.

Nvidia’s share price at a crossroads

Although the chipmaker’s share price recovered from Monday’s session lows to close above the key $97 support area, it remains precariously positioned roughly halfway between the 50-day and 200-day range . moving averages (MAs) amid the likelihood of further market fluctuations in the short term.

Shares rose 3.4% to $103.90 in premarket trading Tuesday, about two hours before the opening bell.

Key support levels to monitor

If Nvidia shares fail to hold the $97 key support area, investors should watch two important levels where the price could attract buying interest.

The first sits at $75, just below the 200-day MA, an area on the chart where the price could find support from a horizontal line connecting the February peak with the April peak swing low.

A discrimination below this level opens the door to a sale off fell to around $51, where shares would likely see bulls defend three peaks in the stock, two of which marked previous record highs between August and December of last year.

Note these important resistance levels

If the stock holds the $97 level, it is worth monitoring two crucial price levels where the stock could come under indirect selling pressure.

Firstly, the price would likely encounter resistance around $116 in a range of comparable trading levels that formed on the chart between May and early August. This is also an area of ​​interest as it is very close to a failed retest of the 50-day MA earlier this month and the 50% Fibonacci Retracement Level using a grid stretched from the June high to the August low.

The story continues

A rally above this level could act as a catalyst for subsequent buying towards the $136 area, a place where sellers could look to book profits near the stock’s record close, which also aligns with the July price. swing high.

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