Key Takeaways
- Nvidia shares moved higher in premarket trading Thursday after the AI investor favorite released quarterly results and an outlook that surpassed Wall Street expectations.
- Trading volumes have remained light following a breakout from an ascending triangle, suggesting that larger market players may have remained on the sidelines ahead of the chipmaker’s quarterly report.
- Investors should watch important support levels on Nvidia chart around $136, $115, and $97, while monitoring a measured move price target at $186.
Nvidia (NVDA) shares moved higher in premarket trading Thursday after the AI chipmaker released quarterly results and an outlook that surpassed analysts’ expectations.
The company’s closely watched data center revenue more than doubled in the fiscal third quarter from a year earlier, boosted by AI infrastructure spending by large technology companies. Executives told analysts on the post-earnings conference call that demand for the chipmaker’s next-generation Blackwell system is enormous and that the company is working to boost supply, putting Blackwell revenue on track to exceed estimates.
Nvidia shares have nearly doubled since the start of the year amid the company’s dominance in the AI chip market coupled with insatiable demand for silicon that powers the technology. The stock was up nearly 2% at around $149 in recent premarket trading.
Below, we take a look at Nvidia’s chart and use technical analysis to identify key post-earnings price levels to watch out for.
Volumes Light After Ascending Triangle Breakout
Nvidia shares traded within a four-month ascending triangle before breaking out above the chart pattern last month. Since then, the stock’s price has continued to track higher, with the 50-period moving average providing support.
It’s worth noting that trading volumes have remained light following the breakout, suggesting that larger market players may have remained on the sidelines ahead of the chipmaker’s quarterly report.
Looking ahead, let’s turn to Nvidia’s chart to identify several important post-earnings support levels that investors may be watching and point out a potential measured move bullish price target to monitor if the stock continues its longer-term uptrend.
Important Support Levels to Watch
Amid earnings-related weakness, investors should initially keep track of the $136 level. This location could provide support near the ascending triangle’s top trendline, an area on the chart that may flip from prior resistance into future support.
A breakdown below this level could see the shares drop to around $115, a region where the stock may attract buying interest near a trendline that connects a range of comparable trading levels on the chart between May and October.
Further selling in the stock may bring the key $97 area into play. Investors could look for buying opportunities at this level near two peaks that formed on the chart in March which closely align with prices positioned around the early-August sell-off low.
Measured Move Price Target
Investors can project a chart-based price target by applying the measured move technique, also known as the measuring principle, to Nvidia’s chart.
To do this, we calculate the distance between the ascending triangle’s two trendlines near their widest point and add that amount to the pattern’s top trendline. In other words, we add $50 to $136, which forecasts a target of $186, an area about 27% above Wednesday’s closing price where investors may choose to take profits.
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