Welcome to your daily NVIDIA report for Tuesday, May 6, 2025. In this analysis, we will explore the current stock price movements and critical levels to watch, based on the latest charts and market trends. With NVIDIA’s stock experiencing significant fluctuations, understanding these trends can aid both short-term traders and long-term investors in making informed decisions.
This week, NVIDIA closed just above the crucial convergent channel area, specifically between 1119 and 11219. This closing position indicates a potential for a rally in the upcoming months, particularly as we look ahead to the low 150s. However, it’s essential to approach this early stage with caution, as it is particularly vulnerable to rejection.
Current Market Analysis
Starting with the weekly chart, the recent closure above both the descending four-month channel top and the nine-month channel bottom suggests a bullish outlook. Analysts are observing the potential for a rally lasting between three to five months, which could see NVIDIA’s stock reach the low 150s. Importantly, those considering a long position should look for opportunities above the 1119 to 11219 range.
As we delve into the daily chart, we find the same channel formations. The daily channel bottom aligns with the 11219 level observed on the weekly chart, while the descending channel top shows a notable resistance at 1105. Maintaining a position above 1118 is crucial for sustaining a stable market dynamic.
Short-term Projections
Looking ahead, we anticipate that the 12364 descending speed line will present itself as a significant resistance level over the next few weeks. A closure above 12409 on the weekly chart would signal continued strength, potentially pushing the stock towards the low 150s in the next two to three months.
For those trading NVIDIA, the key level to watch remains the 11510 mark, which holds significance as the high of the recent low from early April. A daily settlement above this level could set the stage for reaching 11988 by the end of the week, thereby supporting the bullish case for further gains towards 12364.
Downside Risks
Conversely, should the stock break below 1105, it opens the door for a potential drop to 10710. This scenario is particularly concerning for long-term holders. A settlement below 1105 implies weakness, and failure to maintain above this threshold could trigger further declines towards 95 and a quarter within weeks.
If the market tests 10710 and holds, it may provide an opportunity for recovery back above the 111 handle by the end of the week. However, if we close below 10710 after dipping below 1105, it indicates a significant shift in market sentiment towards the bearish side.
Strategic Considerations for Traders
For traders currently long on NVIDIA, the decision to hold or exit a position will depend heavily on individual risk tolerance. If the stock closes below 1105, it may be prudent to consider reducing exposure. Conversely, a strong close above 11510 should provide confidence in maintaining a long position, with targets set at 11988 and beyond.
- Watch for a closure above 11510 for bullish signals.
- A settlement below 1105 may trigger bearish actions.
- Target levels are 11988 and 12364 for bullish trades.
- Be cautious of potential declines to 10710 and 95.
Conclusion
In summary, the current state of NVIDIA’s stock presents both opportunities and risks. While the potential for a rally exists, traders must remain vigilant of key support and resistance levels. As always, careful analysis and strategic planning are essential for navigating the volatile landscape of stock trading.
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Credit: Wicked Stocks
