Watch These Nvidia Price Levels as Stock Seesaws After Earnings Report

Nvidia (NVDA) shares seesawed in extended trading on Wednesday after the AI investor favorite posted better-than-expected quarterly results and issued a strong outlook amid booming demand for its advanced AI chips.

The company saw fourth-quarter revenue surge 78% to $39.33 billion from a year earlier, with the company’s next generation Blackwell chips accounting for nearly 30% of net sales during the period. On that front, Nvidia’s CFO Colette Kress said the company expects to significantly ramp up sales of Blackwell chips in the first quarter.

Executives also pointed out that the company’s new chips would be used to deliver AI software and applications, broadening their current use of developing and training AI.

Nvidia shares, which gained nearly 4% during today’s regular trading session, are roughly flat on the year through Wednesday’s close but have climbed 67% over the past 12 months. The stock fell 1.5% to $129.32 in extended trading, after fluctuating between gains and losses following the release of the quarterly report and during the conference call with company executives.

Below, we take a closer look at Nvidia’s weekly chart and apply technical analysis to point out key price levels worth watching out for.

Pre-Earnings Consolidation

After forming a bullish engulfing pattern at the 50-period moving average, Nvidia shares moved higher the following week before entering a consolidation phase ahead of the chipmaker’s quarterly results.

Meanwhile, the relative strength index gives a reading of around 50 to indicate neutral conditions, while declining trading volumes in recent weeks suggest that larger market participants remained on the sidelines ahead of today’s report.

Let’s identify key support levels and overhead areas that investors may be tracking.

Key Support Levels to Watch

The first nearby support level to watch sits around $130. This area, just 1% below Wednesday’s closing price, may attract buying interest near a trendline that connects peaks in June, July and August with a series of comparable price points on the chart between December and February.

A breakdown below this important technical level could trigger a fall to the $113 level, a location on the chart where the shares may find support near the low of the bullish engulfing pattern.

Further selling opens the door for a more significant correction down to around $96, about 27% below Wednesday’s close. Such a drop could see investors looking for buying opportunities near the prominent March peak, which closely aligns with the August sell-off trough.

Crucial Overhead Areas to Monitor

A move higher after earnings could see the chipmaker’s shares revisit the crucial $153 level. Tactical traders who have accumulated shares through the recent consolidation phase may look for exit points near the stock’s record high.

Investors can predict a longer-term overhead area to monitor by using the bars pattern tool. When applying the analysis to Nvidia’s chart, we take the stock’s trending move from October 2023 to March last year and overlay it from this month’s low, which forecasts a bullish target of around $255.

We selected this prior move as it also commenced following the formation of a bullish engulfing pattern after a brief consolidation period, providing clues to where a new uptrend may be headed if price action rhymes.

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As of the date this article was written, the author does not own any of the above securities.