Nvidia Stock Seesaws After Earnings: Key Price Levels to Watch

Nvidia (NVDA) shares have been on a rollercoaster ride following the company's earnings report, with investors eagerly watching key price levels. The AI chip giant reported better-than-expected results and issued a strong outlook, but the stock has since fluctuated between gains and losses in extended trading. As the market digests the news, investors should keep an eye on several important price levels to gauge the stock's direction.



Key Support Levels to Watch

1. $130: This level represents a crucial support area for Nvidia shares, as it aligns with a trendline connecting recent price peaks. A breakdown below this level could signal a more significant correction in the stock's price.
2. $113: If Nvidia shares fall below the $130 support level, the next key area to watch is around $113. This level corresponds to the low of the bullish engulfing pattern formed earlier in the year and may attract buying interest from bargain hunters.
3. $96: In the event of a deeper correction, investors should monitor the $96 level, which is approximately 27% below Wednesday's close. This area may provide an opportunity for investors to enter long positions, as it closely aligns with the March peak and August sell-off trough.

Crucial Overhead Areas to Monitor

1. $153: As Nvidia shares rally from current levels, investors should be aware of the $153 resistance area. This level corresponds to the stock's record high and may serve as a barrier to further gains.
2. $255: A longer-term overhead area to monitor is around $255, which can be calculated by applying a bars pattern to the stock's trending move from October 2023 to March 2024. This target suggests a bullish outlook for Nvidia shares if price action rhymes with the past.

Investors should remain vigilant as Nvidia shares continue to see-saw following the earnings report. By keeping an eye on these key price levels, they can better anticipate the stock's direction and make informed trading decisions. As always, it is essential to stay up-to-date with the latest news and developments surrounding the company and the broader market to make well-informed investment decisions.