Nvidia Shares Trade in Defined Range as Key Levels Loom
Nvidia shares have been navigating a clear sideways trading pattern since December, fluctuating between approximately $169 and $194-$195. This range has been repeatedly tested, establishing a critical decision zone for the stock. A positive sign for investors is the successful defense of the rising 200-day EMA in early February, suggesting continued accumulation by institutional investors at that level. The stock’s Relative Strength Index (RSI) currently sits above 48.5, not yet signaling a sustained bearish trend.
A decisive break above $195 on a daily closing basis would resolve the range to the upside and reactivate the overarching uptrend. Based on the height of the trading range, this breakout could project a technical target of around $218. This scenario could materialize if Nvidia delivers strong earnings and optimistic guidance regarding demand for its artificial intelligence products.
Conversely, a disappointment could trigger a fall below $170, serving as a clear warning signal. Such a move would not only breach the range to the downside but also put pressure on the rising 200-day moving average. Should the RSI simultaneously fall below 48.5, the short-term chart picture would deteriorate. Further testing of the lower end of the range would then become likely, with a sustained breach potentially leading to price targets around $145.
Nvidia – Daily ChartÂ
Nvidia’s performance is closely watched by investors as a bellwether for the semiconductor industry and the broader technology sector. The company’s position as a leader in AI chip development makes its earnings reports particularly impactful for market sentiment.
