- Summary:
- The $120 mark is psychologically important as it was the stock split price, and I believe Nvidia share price is about to break out above it.
Nvidia share price finally returned above the psychological $120 mark last week, but it declined in the previous two trading sessions. This signals that the stock is struggling to find traction for sustained upside. However, it is still above the 20-EMA and 50-EMA levels, which points to a bullish undercurrent.
Nvidia could face headwinds if the trade war between China and the United States strengthens. As China is a major market for tech growth, restrictions on chip sales to the nation have limited the upside for Nvidia.
Bloomberg reported on Friday that China’s Government was pressuring local manufacturers to stop using Nvidia’s H20 processors and instead use locally manufactured chips. The move is designed to boost China’s AI chips industry, which still lags behind. However, it will pressure Nvidia share price, as it could result in reduced market share.
Nvidia (NASDAQ: NVDA) was down by 1.3 percent and traded at $119.82 in the early trading session on Monday. That said Nvidia expects increased revenue from the fourth quarter, as its BlackWell GPU processors start shipping out. The sentiment around the most advanced AI-centric GPUs will likely see Nvidia share price build a stronger upside momentum heading into October.
NVDA price today
Nvidia share price faces resistance at the 120.46 pivot mark, and the bears will be in control below that mark. The first support will likely be at 119.33, but a prolonged bearish control could breach that level to test the second support at 118.00. As the 20-EMA is at 118.10 on the daily chart, the stock needs to stay above that mark to stand a good chance of breaking above the $120 mark.
On the other hand, the upside will be more likely if NVDA price stays above 120.46. In that case, the first barrier will likely be at 121.25. However, a stronger upward momentum could break above that level and invalidate the downside narrative. Meanwhile, the price could rise further to test 122.15.
