Yahoo Finance

Key Takeaways

• Nvidia shares held up better than other Magnificent 7 stocks on Thursday after surging 6% the previous session, as investors have sought dip-buying opportunities in the AI chipmaker.

• Since setting a record high in early January, the stock has traded within a descending channel, with the price recently finding buying interest near the pattern's lower trendline.

• Investors should watch key support levels on Nvidia's chart around $105 and $96, while also monitoring important resistance levels near $130 and $153.

Nvidia (NVDA) shares held up better than other Magnificent 7 stocks on Thursday after surging 6% the previous session, as investors have sought dip-buying opportunities in the chipmaker.

The AI favorite has been under pressure since late January after AI competition from China sparked fears of overspending by technology giants on the infrastructure that Nvidia sells. More recently, worries that tariffs, a flare-up of inflation, and further export curbs could drag down chip sales have also weighed on sentiment.

Yesterday’s bounce coincided with a report that the chipmaker, along with Advanced Micro Devices (AMD), and Broadcom (AVGO), has been approached by Taiwan Semiconductor Manufacturing Company (TSM) about forming a joint venture to own and run Intel’s (INTC) foundry division.

On Thursday, Nvidia shares closed 0.1% lower at $115.58, while its Mag 7 counterparts all fell sharply amid a broader sell-off that sent the S&P 500 into correction for the first time since 2023. Nvidia shares are down 14% since the start of the year, with the lion’s shares of that loss occurring over the last month.

Below, we take a closer look at Nvidia’s chart and apply technical analysis to point out key price levels that investors may be watching.

Descending Channel Takes Shape

Since setting a record high in early January, Nvidia shares have traded within a descending channel, with volume picking up in the second half of February.

More recently, the stock found buying interest near the channel’s lower trendline, coinciding with an uptick in the relative strength index (RSI) as the indicator moves back towards neutral territory.

Looking ahead, as the 50-day moving average (MA) converges towards the 200-Day MA, investors should watch for a potential death cross, a signal that forecasts further downside.

Let’s identify several key support and resistance levels on Nvidia’s chart that could come into play during future price swings.

Key Support Levels to Watch

The first key support level to watch sits at $105. This area, currently in the vicinity of the descending channel’s lower trendline, could attract buying interest near this month’s low and the September trough.