Watch These Nvidia Price Levels as Stock Surges to All-Time High

Key Takeaways

• Nvidia shares hit a record closing high on Wednesday, pushing the chipmaker back to the top spot on the list of the world's most valuable companies.

• The stock trended higher within a rising wedge before breaking out above the pattern in Wednesday’s trading session.

• Bars pattern analysis projects an upside price target of around $205 and indicates the move higher may last until late July.

• Investors should monitor major support levels on Nvidia's chart around $150 and $130.

Nvidia (NVDA) shares closed at a record high on Wednesday, pushing the chipmaker back to the top spot on the list of the world's most valuable companies.

The move, which propelled the company’s market capitalization to nearly $3.77 trillion, above Microsoft's (MSFT) $3.66 trillion, came after CEO Jensen Huang reportedly said at the tech behemoth’s annual shareholder meeting on Wednesday that the company has a multitrillion-dollar growth opportunity in AI and robotics.

The stock has also received a boost from favorable Wall Street commentary, with analysts pointing out that the chipmaker stands to benefit from growing sovereign AI demand as countries use the technology to meet critical healthcare, defense, industrial, financial and cybersecurity needs.

Nvidia shares jumped more than 4% Wednesday to close at $154.31. The stock is nearly 80% above its early-April low and has gained 15% since the start of the year, buoyed by soaring demand for the company's chips as hyperscalers ramp up investments in AI infrastructure.

Below, we analyze the technicals on Nvidia’s chart to identify major price levels that investors will likely be watching.

Rising Wedge Breakout

After climbing back above the 200-day moving average (MA) last month, Nvidia shares trended higher within a rising wedge before breaking out above the pattern in Wednesday’s trading session.

Moreover, the relative strength index confirms bullish price momentum, though the indicator also cautions overbought conditions with a reading above the 70 threshold, potentially leading to short-term profit-taking.

It’s also worth noting that the 50-day MA sits on the precipice of crossing above the 200-day MA to form a bullish golden cross, a chart signal pointing to the start of a new move higher.

Let’s apply technical analysis to Nvidia’s chart to forecast where the price may be headed and also identify major support levels worth monitoring during future pullbacks in the stock.

Bars Pattern Analysis

Investors can forecast how a new move higher in Nvidia shares may play out by using bars pattern analysis, a technique that analyzes prior trends on the chart to make future price projections.

When applying the analysis to Nvidia’s chart, we take the bullish price bars that preceded the rising wedge pattern and reposition them from Wednesday’s breakout point. This projects an upside price target of around $205 and indicates the trend may last until late July if a similar move higher takes shape.

Major Support Levels Worth Monitoring

During profit-taking in the stock, it’s initially worth monitoring the $150 level. This area, which could flip from prior resistance to future support, may attract buying interest near Wednesday's breakout area and a trendline stretching back to last November.

Finally, a close below this major technical level opens the door to a potential bull trap, a trading event that could see Nvidia shares fall to lower support around $130. Investors may seek entry points in this area near the key moving averages and a horizontal line that links a range of trading activity on the chart between August and May.

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