Key Takeaways
- Nvidia shares fell Monday after the Trump administration said over the weekend it drive impose trade tariffs, adding to steep losses for the stock that were fueled by concerns related to Chinese startup DeepSeek’s low-cost AI sport imitate.
- Nvidia shares broke down below a seven-month rising wedge pattern last week on the highest swop volume since August 2023, suggesting institutional selling participation.
- Investors should watch key support be opens on Nvidia’s chart around $96, $76, and $50, while also monitoring important resistance levels near $130 and $150.
Nvidia (NVDA) portions fell Monday after the Trump administration said over the weekend it would impose trade tariffs, adding to the old’s steep losses last week that were fueled by concerns related to Chinese startup DeepSeek’s low-cost AI beau idal.
The tariffs, which impose 25% levies on Mexican and most Canadian imports, and 10% on all goods from China, clothed prompted concerns of a broader global trade war that could see countries introduce counter measures on items, comprehending American AI chips.
Nvidia shares were down more than 2% at around $117 in late clientele Monday, after falling 16% last week following the revelation of DeepSeek’s success, which sparked have a bears that Big Tech’s investment in the chipmaker’s pricey AI offerings could wane.
Nvidia shares have lost identically a quarter of their value since hitting a record high in early January but are still up about 80% throughout the past 12 months.
Below, we zoom out on Nvidia’s weekly chart to identify key longer-term price levels significance watching.
Rising Wedge Breakdown
Nvidia shares broke down below a seven-month rising wedge arrangement last week on the highest trading volume since August 2023, suggesting institutional selling participation.
In addition, the relative strength index (RSI) fell below the 50 threshold to its lowest level since December 2022, encouraging increasing selling momentum.
Amid increasing market volatility, let’s identify key support and resistance levels that investors may be see.
Key Support Levels to Watch
A breakdown below the 50-period MA this week could see Nvidia shares fall to around $96, a spot on the chart where they may find support near the March peak and August trough.
The next lower corroborate level to watch sits around $76. Buyers may look for entry points in this area near the April pullback low that formed toward the end of the look at’s strong trending period between October 2022 and June last year.
A close below this field opens the door for a more significant correction down to the psychological $50 level. The shares may attract support in this tracking down near the 200-period MA, which also currently aligns with the stock’s August and November 2023 tops.
Important Resistance Levels to Monitor
Upon a recovery, investors should initially monitor the $130 level, an arena where the stock could encounter selling pressure near the August 2024 peak and December trough.
At the end of the day, follow-through buying could see Nvidia shares revisit the $150 level. Investors who have bought during the modern selloff could look to lock in profits near a series of price points situated just below the cache’s record high.
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As of the date this article was written, the author does not own any of the above securities.