Nvidia (NVDA) shares 澳洲幸运5官方开奖结果体彩网:plunged Monday amid concerns that a powerful, cost-efficient AI model 澳洲幸运ꦛ5官方开奖结果体彩网:🌞developed by Chinese startup DeepSeek could herald a🌳 reduction in big tech’s investment in the chi🃏pmaker’s pricey AI offerings.

In recent years, hyperscalers, such as Microsoft (MSFT), Alphabet (GOOG)(GOOGL) and Amazon (AMZN) have spent billions of dollars purch𝕴asing the company’s AI pl𝐆atforms as they ramp up their infrastructure to power surging demand for the emerging technology. That spending has propelled Nvidia to become one of the world’s most valuable companies.

Nvidia shares fell 17% to $118.58 on Monday, shedding nearly $600 billion in market capitalization. Even with the steep decline, the stock has still nearly doubled over the past 12 months and has jumped more than eight-fold since the launch of OpenAI’s ChatGPT in November 2022.

Below, we take a closer look at Nvidia’s chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify crucial price levels worth watching after toda🍰y’s rout.

Rising Wedge Breakdown

Nvidia shares on Monday broke down below a seven-month 澳洲幸运5官方开奖结果体彩网:rising wedge and finished below the closely watched 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA)♌, potentially setting the stage for follow-through selling.

Importantly, Monday’s selloff occurred on the highest daily 澳洲幸运5官方开奖结果体彩网:trading volume since May, indicating significant 澳洲幸运5官方开奖结果体彩网:portfolio rebalancing by larger market participants.

Let’s identify three crucial 澳洲幸运5官方开奖结果体彩网:support levels on Nvidia’s chart that investors may be watching and also point out a key overhea🐠d area to monitor during upswings.🦂

Crucial Support Levels to Watch

Firstly, it’s worth keeping track of the $102 level. The shares could encounter support in this area near the opening price of a late May 澳洲幸运5官方开奖结果体彩网:breakaway gap, which also closely align⛦s with the early-September ꦕtrough.

A close below this level raises the possibility of a fall to around $96, a location on the chart where investors could seek buying opportunities near the March twin peaks and early-August selloff low.

A more significant correction in the AI chipmaker’s stock could spark a decline to the $76 level. This region, around 36% below Monday’s closing price, may attract bargain hunters looking to 澳洲幸运5官方开奖结果体彩网:accumulate shares near last year’s prominent mid-April 澳洲幸运5官方开奖结果体彩网:swing low.

Key Overhead Area to Monitor

During recovery efforts, investors should monit⛄or how the stock responds to the $130 area. A close back ab꧋ove the 200-day MA may lead to a retest of a key trendline that connects the August peak with troughs that formed on the chart in December and January.

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