Nvidia (NVDA) shares will likely remain on watchlists Monday after the澳洲幸运5官方开奖结果体彩网: artificial intelligence (AI)-darling surged last week, as investors snapped up a recent dip in the stock following 澳洲幸运5官方开奖结果体彩网:favorable Wall Street commentary pointing to continuing ꦛgrowth opport🦄unities amid insatiable demand for AI infrastructure.

Last week, the AI chipmaker’s stock gained nearly 16% after dropping around 23% between late August and early September as investors’ optimism towards AI cooled in the wake of the company 澳洲幸运5官方开奖结果体彩网:posting slowing quarterly growth, despite exceeding analysts’ earnings and sales expectations. However, market sentiment received a boost recently after Bernstein analysts called Nvidia “the best way to play AI,” while Bank of America analysts noted earlier this month that the recent pullback provides an “澳洲幸运5官方开奖结果体彩网:enhanced Buy opportunity.”

Below, we’ll take a close look at Nvidia’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important price levels to watch out for after recent swin🤡gs in theꦫ stock.

Shares Trade Within Descending Channel

Since setting their record high in late June, Nvidia shares have traded within a 澳洲幸运5官方开奖结果体彩网:descending channel, a chart pattern consisting of two parallel downw♛ard sloping trendlines♋ that indicates a downtrend in the stock.

More recently, the price has made a move towards the channel’s top trendline, reclaiming the 澳洲幸运5官方开奖结果体彩网:50-day moving average (MA) in the process.

However, similarly to the August rally, the stock’s latest advance has occurred on lackluster volume, pointing to lack of participation from 澳洲幸运5官方开奖结果体彩网:institutional investors. Th𝔍eꦛ stock gained 15.8% last week and closed Friday at $119.10.

Overhead Price Levels to Monitor

The first key area to monitor on the chart sits around $126, where the shares may run into 澳洲幸运5官方开奖结果体彩网:resistance near the descending channel’s top trendline. It’s also worth watching for increasing trading volumes at this level, which may signal a looming breakout above the pattern.

If a breakout does take place, investors should eye the $136 region, a location where sellers may 澳洲幸运5官方开奖结果体彩网:lock in profits near the stock’s June 18 record close, which also closely corresponds with the mid-July 澳洲幸运5官方开奖结果体彩网:swing high.

To forecast a 澳洲幸运5官方开奖结果体彩网:price target above Nvidia’s 澳洲幸运5官方开奖结果体彩网:all-time high (ATH), we can use the 澳洲幸运5官方开奖结果体彩网:measuring principle. To do this, we calculate the distance between the descend⛎ing channel’s two trendlines and add that amount to the pattern’s upper trendline. For example, we add $40 to $126, ♎which predicts an upside target of $166.

Lower Price Levels to Watch

If Nvidia’s shares move lower from current levels, investors should keep an eye on the $97 region, an area where the shares may encounter support near a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting the March twin peaks with a series of comparable trading level�𓆉�s positioned around last month’s low.

Further selling could lead to a 澳洲幸运5官方开奖结果体彩网:breakdown below the channel’s lower trendline and 澳洲幸运5官方开奖结果体彩网:200-day MA that may see the stock revisit the $75 area, a location on the charꦉt that would likely attract bargain hunters near the mid-February peak and April trough.

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