Nvidia share price returned to the upside on Friday, following an extended decline below the $140 mark. It ended trading with 1.99 percent in daily gains in the session but registered its first weekly loss after successive gains in the previous five weeks. That could signal the onset of a potential downside action in the near-term, bearing in mind the sentiment surrounding this week’s US elections.
Nvidia (NASDAQ: NVDA) is one of the companies that could potentially be impacted significantly once a new administration comes into office. The Biden administration has reportedly considered tightening restrictions on the export of high-end AI chips, but the extent of the restrictions has not yet been divulged. However, the process could be sped up once a new administration settles in.
That said, the underlying NVDA price momentum and sentiment is still bullish-leaning and could provide support for the stock in the coming days. Nvidia share price was up by 2.9 percent in after-hours trading, bringing it back near the psychological $140 mark.
Meanwhile, Nvidia is set to replace Intel in the Dow Jones Index, ending the latter’s 25-year stay in the 30-stock index. As generative AI has grown substantially in the last two years, Nvidia has stepped up and established itself as the undisputable market leader in the industry. Meanwhile, Intel has been on a decline, falling behind not only Nvidia, but also peers like AMD and Broadcom.
Nvidia share price will likely head upward if the action stays above 138.90. If that happens, the stock could move higher to encounter the first resistance at 139.98. However, if the bulls extend their control, it could enable a break above that level to test 141.20.
On the other hand, moving below 138.90 will favour the sellers to take control. That could see the first support coming at 138.00. However, an extended control by the sellers could break below that level to test 137.05.
This post was last modified on %s = human-readable time difference 11:26