Nvidia shares experienced a rise in premarket trading on Tuesday, following a significant drop of over 6% the previous day amid a broader market decline. This drop coincided with reports indicating that the release of the company’s highly anticipated Blackwell chips has been postponed by at least three months due to design flaws.
Despite recovering from its lows on Monday to close above the crucial $97 support level, Nvidia’s stock still finds itself in a precarious position, roughly located between the 50- and 200-day moving averages.
Potential support for Nvidia shares lies around $75 and $51, while resistance could emerge near $116 and $136.
After reaching a record high on June 18, Nvidia shares have seen a decline of 26%, as investors have been selling off chip stocks amid concerns over tightening export regulations with China and the high valuations prompted by the artificial intelligence boom since OpenAI launched ChatGPT in November 2022.
In this context, Nvidia’s chart analysis highlights essential support and resistance levels that investors should monitor amid ongoing market volatility.
The chipmaker’s stock rebounded to $103.90 in premarket trading, up 3.4% about two hours before the market opened.
Investors should pay attention to two critical support levels. If Nvidia shares fail to stay above the $97 support, the first key level to observe is $75, just below the 200-day moving average. This area coincides with a horizontal line connecting peak prices from February to swing lows in April.
Should the stock price break below $75, a decline toward approximately $51 could occur, where there is potential buying interest as this level encompasses three significant peaks from the past year.
On the resistance side, if the stock manages to maintain the $97 level, attention should turn to two crucial price points where selling pressure might arise. One such level is around $116, formed from comparable trading ranges between May and early August. This level is significant as it is also close to a recent failed retest of the 50-day moving average.
A rally surpassing this $116 threshold could trigger further buying momentum, potentially pushing prices toward $136, where sellers may look to take profits near the stock’s record closing price, aligning with a swing high from July.