Nvidia Price Levels to Watch as Stock Hits Record High on AI Optimism

Key Takeaways

• Nvidia shares will likely remain in the spotlight after surging to a new record high Monday amid optimism about the company’s dominance of the AI chip market and insatiable demand for its next-generation Blackwell GPU architecture.
• The relative strength index indicates bullish price momentum and gives a reading below overbought levels, suggesting the stock has ample room to test higher prices.
• A bars pattern, which extracts the stock’s trend higher from April to June and repositions it from the start of the current move higher in early September, projects an upside target on Nvidia’s chart around $180.
• During periods of weakness, investors should monitor important support levels around $125, $97, and $76.

Shares of AI investor favorite Nvidia (NVDA) are likely remain to remain the spotlight Tuesday after jumping to a new record high yesterday.

The stock has nearly tripled since the start of the year, and most analysts believe there’s further upside based on the company’s dominance of the AI chip market and insatiable demand for its next-generation Blackwell GPU architecture.

Analysts covering the stock tracked by Visible Alpha have a consensus price target on the shares of $154.19, up from $152.41 a week ago and representing 7% upside from Monday’s closing price of $143.71.

Below, we break down the technicals on Nvidia’s weekly chart and identify important price levels that other investors will likely be watching.

Bullish Price Momentum Continues

After reaching a prior peak in mid-June, Nvidia shares traded within a symmetrical triangle before staging a decisive breakout above the pattern earlier this month.

It’s also worth pointing out, that although trading volume remains below longer-term averages, the stock logged its highest share turnover last week since late September.

From a momentum standpoint, the relative strength index (RSI) indicates bullish price action and gives a reading below overbought levels, suggesting the stock has ample room to move higher.

Looking ahead, let’s forecast a price target for the stock’s current uptrend and also locate several important levels on Nvidia’s chart that could attract buying interest during retracements.

Bullish Price Target

To speculate where the stock’s current trend higher may be headed, we can use a bars pattern, a technique that studies earlier trends to forecast future directional moves. 

When applying the analysis to Nvidia’s chart, we’ll extract the trend higher from April to June and reposition it from the start of the stock’s current move higher in early September. Such a technique indicates a potential upside target of around $180, about 25% above Monday’s closing price.

We selected this prior trend as it commenced with a gain of around 15% on the weekly chart, similar to how the stock’s current move higher started.

Important Support Levels to Monitor

During periods of weakness, investors should initially keep their eyes peeled on the $125 level, a location on the chart where the shares may encounter support near the symmetrical triangle pattern’s breakout area.

A breakdown below this level could see the shares decline to around $97. Investors may view this region as a buying opportunity, given its proximity to the March peak and 50-week moving average.

Finally, a bearish reversal in the stock may trigger a move down to the $76 level, where bargain hunters would likely look for entry points around the mid-April pullback low.

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