Nvidia (NVDA) shares are in the spotlight Monday ahead of the 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) darling’s 澳洲幸运5官方开奖结果体彩网:quarterly results later this week and following a repo꧟rt that said the company’s next-generation AI chips have encountered issues overheating in 𝐆servers.

The AI 澳洲幸运5官方开奖结果体彩网:chipmaker, which is due to release its results after the closing bell on Wednesday, is 澳洲幸运5官方开奖结果体彩网:expected to announce th൩at both revenue and profit grew more than 80% from a year ago, according to analysts' consensus estimates. Investors will also be watching for updates on Nvidia's Blackwell AI cᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚhip shipments, amid concerns that supply constraints could limit the upside of the company's near-term outlook.

Blackwell chips could also come under further scrutiny after The Information reported on Sunday that they have encountered overheating problems when placed in server racks designed to hold up to 72 澳洲幸运5官方开奖结果体彩网:graphics processing unit (GPUs).

Nvidia shares were down 0.7% at $141 in late-morning trading Monday, after falling more than 3% earlier in the session. The stock price has nearly tripled since🐬 the start of 2024.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Nvidia’s 澳洲幸运5官方开奖结果体彩网:weekly chart ﷽to identify k🦂ey price levels other investors may be watching.

Slowing Buying Momentum

After hitting their June peak, Nvidia shares traded within a 澳洲幸运5官方开奖结果体彩网:symmetrical triangle before breaking out above the pat🔯tern last month.

However, since that time, the stock has gone on make new highs, but 澳洲幸运5官方开奖结果体彩网:trading volumes have continued to decrease, indicating a lack of buying ♈participation from larger market participants.

Moreover, as the stock has made higher peaks since March, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) has formed comparatively shallower peaks to create a bearish 澳洲幸运5官方开奖结果体彩网:divergence, a chart signal that poꦦints🧔 to slowing buying momentum.

Let’s take a look at three key 澳洲幸运5官方开奖结果体彩网:support levels on Nvidia’s chart and use technical analysis to project a bullish 澳洲幸运5官方开奖结果体彩网:price target.

Key Support Levels to Watch

A 澳洲幸运5官方开奖结果体彩网:breakdown below the symmetrical triangle could see ꧂the shares initially reဣvisit support around $97, a location on the chart where investors may look for buying opportunities near the March peak, which closely aligns with the early-August low.

Selling below this level opens the door for a 澳洲幸运5官方开奖结果体彩网:retracement down to the $76 level, an area on the chart where the stock could encounter support from the mid-April pullback low.

A 澳洲幸运5官方开奖结果体彩网:technical correction in the stock could bring the $48 level into play. This area, which sits about 66% below Friday’s closing price, would likely attract bargain hunters near a range of narrow 澳洲幸运5官方开奖结果体彩网:consolidation that formed on the chart between July 20💦23 and January.

Bars Pattern Price Target to Monitor

If the AI investor favorite's shares continue to track higher, we can project a potential bullish target by using a bars pattern, a technique that analyzes prior trends to predict future price moves.

When applying the tool to Nvidia’s chart, we extract the stock’s trending move from January to June and reposition it from last month’s symmetrical triangle breakout point. This projects a bullish target of around $270, a location where investors may decide to 澳洲幸运5官方开奖结果体彩网:lock in profits.

We selected this prior move because it commenced following a breakout from a consolation period, similar to how the current move higher has started and m⛄ay play out if price history rhymes. 

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.