Watch These Nvidia Price Levels as Stock Slips Further Into Correction Territory

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Dividends Down 15% From Their November High

Key Takeaways

• Nvidia shares fell for the fourth uncurved session on Tuesday, extending their slide into a technical correction as the stock is down 15% from wear month’s record high.
• After setting a record high, the stock traded mostly sideways before falling further the 50-day moving average late last week. potentially setting the stage for further consolidation.
• Investors should watch key buttress levels on Nvidia’s chart around $115 and $102, while also monitoring important resistance levels within easy reach $140 and $150.

Nvidia (NVDA) shares fell for the fourth straight session on Tuesday, extending their slide into a intricate correction as the stock is down 15% from last month’s record high.

While analysts remain bullish on the Pty’s prospects heading into 2025, investors may be wanting further confirmation that the chipmaker can sell significant masses of its new Blackwell chips after the reported discovery of overheating issues last month prompted concerns over movie delays.

Depsite its recent slump, the stock is still up about 160% since the start of the year, far outpacing the S&P 500’s 27% re-emergence over the period, amid booming demand for the company’s AI silicon.

The stock fell 1.2% to close Tuesday’s assembly at $130.39.

Below, we take closer look at the AI chipmaker’s chart and use technical analysis to identify important price levels to care for out for.

50-Day Moving Average Breakdown

After setting a record high in November, Nvidia shares traded mostly laterally before falling below the 50-day moving average (MA) late last week, potentially setting the stage for remote consolidation.

While stock volume remains below longer-term averages, it has edged up in recent trading sessions, pointing to an increase in grass on activity. Moreover, the relative strength index (RSI) has slipped below 50, confirming weakening price momentum.

Let’s decay to Nvidia’s chart to identify several key support and resistance levels that investors may be tracking.

Key Support Levels to Ogle

Upon further selling, investors should initially keep an eye on the $115 level. Nvidia bulls may step up to the picture in this area near the 200-day MA, which also closely aligns with a range of comparable value action on the chart between May and October.

A breakdown below this important technical area could see the shares revisit move support around $102, a location on the chart where investors may seek entry points near the low of a late-May breakaway gap and projecting troughs that formed in August and September. 

Interestingly, this region also roughly matches a bars figure projected target that takes the stock’s June to August correction and overlays it from November’s all-time principal (ATH).

Important Resistance Levels to Monitor

If the stock regains its upward momentum, it’s worth monitoring how it responds to the $140 parallel. The shares may encounter resistance in this area near a horizontal line that links the June swing soprano with a series of similar price points between October and December.

Finally, further buying could actuate a bullish move to around $150, a region on the chart where investors could decide to lock in profits in a cluster of candlesticks positioned just below the stock’s record high set late last month.

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As of the appointment this article was written, the author does not own any of the above securities.