Nvidia shares surged nearly 16% last week after dropping around 23% between late August and early September. The stock has rallied towards the top of a descending channel pattern, but the move occurred on low volume, indicating a lack of institutional activity. Investors should watch key price levels on Nvidia’s chart.
Overhead resistance sits at $126, $136, and $166, while support levels are at $97 and $75. The $126 level aligns with the top of the descending channel. Increasing volume here may signal a breakout.
If the stock breaks out, it could target $136 and $166, calculated by adding the channel’s height to the breakout point.
Nvidia’s low-volume surge analysis
On the downside, $97 may provide support if shares move lower.
A drop below the channel’s lower trendline could see the stock revisit $75, where bargain hunters might step in. Nvidia exceeded earnings and sales expectations last quarter. Bernstein analysts recently called Nvidia “the best way to play AI,” and Bank of America noted the recent dip provides a buying opportunity.
However, the stock’s latest advance has occurred on low volume, suggesting a lack of institutional participation. The author does not own any Nvidia securities. The analysis is for informational purposes only.
