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Nvidia’s stock experienced a decline in early trading on Tuesday after making its largest single-day percentage increase since July, fueled by the announcement of a potential $100 billion investment in OpenAI.
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The stock broke out from a symmetrical triangle pattern on Monday, signaling a continuation of its overall upward trajectory.
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According to the measured move technique, a price target of $207.64 is anticipated, while bar pattern analysis suggests a possible target closer to $255.
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Investors are advised to keep an eye on critical support levels for Nvidia’s stock at approximately $165 and $150.
Nvidia (NVDA) shares saw a downturn in early trading on Tuesday following a notable surge of nearly 4% on Monday resulting from the news that the tech giant plans to invest as much as $100 billion into OpenAI.
As part of this groundbreaking deal, Nvidia is set to provide OpenAI with its cutting-edge Vera Rubin platform to enhance the development of data centers and other AI infrastructure capable of handling at least 10 gigawatts of power. The partnership details are expected to be finalized in the coming weeks.
Currently, Nvidia shares are trading down 2% around the $180 mark after enjoying a significant uptrend earlier in the week. As of yesterday’s close, the stock has impressively increased by 37% year-to-date, vastly outperforming broader market trends. Investors have increasingly favored Nvidia as notable tech hyperscalers and governmental clients have invested substantially in the company’s offerings in an effort to scale their AI capabilities.
This article will delve deeper into Nvidia’s stock chart, utilizing technical analysis to highlight crucial price levels for investors to monitor.
After achieving a record high last month, Nvidia shares entered a consolidation phase within a symmetrical triangle, breaking out from this formation on Monday.
This breakout suggests a continuation of the stock’s overall bullish trend, with notable increases in trading volume recently indicating strong support from larger market participants.
The relative strength index has also returned to bullish territory, confirming that upward momentum is strengthening.
We’ll identify two likely bullish price targets to monitor on Nvidia’s chart to capitalize on potential follow-through buying, alongside essential support levels that should be observed during retracement opportunities.
Utilizing the measured move technique, or the measuring principle, investors can project an initial price target should the stock rise to a new all-time high.
This method involves calculating the percentage change between the two trendlines of the symmetrical triangle at its widest point and adding this to the upper trendline’s value. In this case, a 16% increase applied to $179 suggests a target around $207.64, which is approximately 13% above Monday’s closing price.
