Monitor These Nvidia Stock Price Levels After Two Years of Massive Gains
Key Takeaways
Shares in
artificial intelligence (AI)
chipmaker Nvidia (
NVDA
) will be in the spotlight ahead of a
presentation by CEO Jensen Huang
scheduled for next Monday at the Consumer Electronics Show in Las Vegas.
Investors will be watching for updates from Huang on sales projections for the company’s Blackwell chips and details about Rubin, Blackwell’s successor, which Nvidia plans to release in 2026. Several leading Wall Street firms have named the AI behemoth as their 2025 “
top pick
,” pointing out that strong demand for its Blackwell platform positions the company for another year of explosive growth.
Nvidia shares closed out 2024 with a gain of 170% amid surging demand for its silicon as big tech customers—including Microsoft (
MSFT
), Meta (
META
) and Alphabet’s (
GOOGL
) Google—beefed up their AI datacenter and
cloud computing
infrastructure. Last year’s big gain came on the heels of a 240% increase in 2023.
Below, we take a closer look at Nvidia’s chart and use
technical analysis
to identify key price levels to watch out for in early
January
.
Descending Channel Takes Shape
After setting their record high in late November, Nvidia shares have traded within a
descending channel
, with the price tagging the pattern’s upper and lower trendlines on several occasions since that time.
More recently, the stock ran into selling pressure near the channel’s top trendline and
50-day moving average (MA)
, though the move occurred on light end-of-year share turnover.
The
relative strength index (RSI)
signals slightly
bearish
price momentum in the stock to kick off 2025 with the indicator falling below 50.
Let’s look at key
support and resistance
levels on Nvidia’s chart that investors may be eyeing as the first quarter gets underway.
Key Support Levels to Watch
The first level to watch sits around $130, a location on the chart where the shares may encounter support near a trendline that connects the prominent August
swing high
with the December
swing low
.
A decisive close below this important technical level could see the shares break down beneath the descending channel’s lower trendline and revisit lower support around $115. This location, currently just below the rising
200-day MA
, would likely attract buying interest near a
horizontal line
that links a range of comparable price points between May and October last year.
Important Resistance Levels to Monitor
Upon a move higher from current levels, investors should initially monitor the $140 area. The shares may run into resistance in this region near the descending channel’s upper trendline, which also closely aligns with the stock’s June 2024
peak
.
Buying above this level could see the shares rally up to around $150. Investors who have bought the recent
retracement
may seek to
lock in profits
in this area near a series of
price action
situated just below the stock’s record high.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our
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for more info.
As of the date this article was written, the author does not own any of the above securities.
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