Missed the chart pattern breakout on Nvidia (NVDA)?
Share prices are in the middle of a pullback to the former neckline, so keep your eyes on these levels!
Nvidia Corporation (NVDA): Daily
Nvida Corporation (NVDA) Daily Chart by TradingView
Shares of this advanced semiconductor company recently busted through the neckline of an inverted head and shoulders pattern, indicating that a long-term uptrend is in the cards.
Before all that happens, though, NVDA might need to gather more bullish energy by pulling back to the former resistance zone.
This area of interest happens to be spanned by the Fibonacci retracement levels around $176.50 to the $200 major psychological level. It’s also right around an ascending trend line that’s been holding since October last year, too!
Technical indicators have yet to catch up on the change in trend, as the 100 SMA is gearing up for a bullish crossover from the 200 SMA.
However, Stochastic is just making its way down from the overbought region, so the correction might keep going until oversold conditions are met.
Analysts are predicting that chipmaking companies like Nvidia or AMD are likely to be another big beneficiary of AI, as these technologies typically require heavy computing capacity.
The likes of OpenAI’s ChatGPT or Microsoft’s chatbot on Bing are running on tens of thousands of GPUs, which might translate to sizeable revenue opportunities for Nvidia.
In any case, watch out for reversal candlesticks or for technical signals to align once the area of interest is tested. If the support zone holds, NVDA could make its way back up to the swing high at $233 and beyond!
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