Nvidia Share Price Slips: Is This a Buying Opportunity or a Warning Sign?

Summary:
• Nvidia slips below support—will it recover or fall further? Key levels and insights ahead of November 21 earnings.

The Nvidia share price has recently faced selling pressure, dropping below the $144.46 support level, which aligns with the 20-day EMA. This break signals increased bearish momentum, with the stock closing Friday at $141.98, down by 3.26%. Here’s what the chart tells us about the next potential moves:

Nvidia Key Support Levels

• $136.15: This level is the immediate support zone, marked by prior consolidation in October. A sustained decline below this level could lead to further bearish momentum.
• $130.03: A stronger support level that coincides with price action from September. It represents the next significant area to watch for a potential bounce.
• $116.19: A deeper support level that aligns with the lows from mid-year, signalling a more pronounced correction is reached.

Nvidia Key Resistance Levels

• $144.46: The first hurdle on the upside, which now acts as resistance after being breached. A recovery above this level would indicate a shift in momentum.
• $149.57: A critical resistance zone that has capped recent rallies. A break above this level could signal the resumption of Nvidia’s bullish trend.
• $155.00: A psychological and technical level, representing an upside target if the stock recovers from current levels.

Technical Indicators

• Moving Averages: The stock has slipped below its 20-day EMA at $144.46, suggesting near-term bearish sentiment. However, the 50-day EMA at $133.92 provides a potential support area.
• RSI: The Relative Strength Index is approaching oversold territory, indicating the possibility of a short-term bounce if selling pressure eases.

Nvidia’s Outlook

If Nvidia holds the $136.15 support level, we could see a consolidation phase, with attempts to reclaim $144.46 in the coming sessions. However, failure to hold this level might accelerate selling, targeting $130.03 next. Conversely, a strong rebound above $144.46 could reinvigorate bullish momentum, pushing the stock toward $149.57 and higher.

The coming week will likely be pivotal as traders watch for price action around these critical levels. Keep an eye on market sentiment and upcoming catalysts, including Nvidia’s earnings report on 21 November 2024, which could drive significant moves.