Welcome to your daily Nvidia report for May 7, 2025. Today, we dive into the latest stock analysis and key technical levels that investors should monitor as the market unfolds. With the recent fluctuations in Nvidia’s stock price, understanding these levels is crucial for making informed trading decisions.
Last Friday marked a significant moment for Nvidia, as the stock closed above the important resistance level of 1119, which is the top of a 34-month descending channel. This breakout suggests potential bullish momentum, but traders need to watch closely for further developments throughout the week.
Current Market Overview
As of now, Nvidia’s stock is positioned above the former channel bottom at 11219. For those holding long positions, the ideal scenario would be a close above 11510, which represents the high of the recent low. Achieving this level would solidify the bullish outlook and set the stage for further gains.
Targets and Projections
Looking ahead, there are two key targets to keep in mind:
- Short-term target: 12327, expected within the next week or two.
- Long-term target: 15313, the all-time high reached on January 25, which is in reach by year-end.
For day traders, the current support levels are slightly wider, with 11045 and 11192 acting as critical points. Traders may find it beneficial to choose their entry point based on market actions around these levels. If the stock were to test these supports, particularly the level of 11045, it could provide a solid buying opportunity.
Potential Risks and Support Levels
Today’s FOMC meeting could introduce some volatility into the market. While interest rates are expected to remain unchanged, any comments from the Fed, particularly from Chairman Jerome Powell, could impact Nvidia’s stock price. If the stock breaks below 11045, the next key support level to watch would be 10786. This level is crucial for maintaining the bullish sentiment; a breach here could lead to further downside.
For those looking for a reliable pivot point, 10786 stands out. If the stock closes below this level, it may signal a shift in the trend, with a potential drop to around 9527 over the next two to three weeks. Therefore, it’s essential for traders to monitor these levels closely and adjust their strategies accordingly.
Trading Strategy
For traders currently holding long positions, the recommendation is to maintain these positions as long as the stock remains above 11219. If the stock tests 10786, it could serve as a strategic entry point for swing traders, but a close below 10786 would prompt a reevaluation of long positions.
In summary, the following key levels should be kept in mind:
- Support at 11045 and 11192
- Critical resistance at 11510
- Targets of 12327 and 15313
Conclusion
As we navigate through this week, keeping an eye on these pivotal levels will be crucial for anyone trading Nvidia stock. With potential volatility on the horizon due to the FOMC meeting, traders should remain vigilant and prepared to adapt their strategies. A close above 11510 could signal strong upward momentum, while a drop below 10786 may suggest re-evaluating long positions. Stay tuned for more updates as we continue to track Nvidia’s performance.
Credit: Wicked Stocks
