Watch these Nvidia stock price levels on the back of a big recovery from recent lows

Shares of Nvidia ( NVDA ) are likely to remain in focus on Friday as investors watch with interest to see if the artificial intelligence (AI) darling can continue its impressive recovery from recent lows.

The stock, which has risen 24% in the past six sessions and helped a broader recovery in U.S. stocks, was supported by favorable brokerage comments from Goldman Sachs, Bank of America, UBS and others, which view the recent correction in the action as a buy the diving opportunity.

Shares of Nvidia rose 0.2 percent to $123.10 in premarket trading Friday, about 90 minutes before the opening bell. The stock closed at $98.91 on Aug. 7, its lowest level since late May, before rallying over the past few days.

Below, we take a closer look at Nvidia’s chart and use technical analysis to identify key price levels that may attract attention.

Volume indicates recovery based on retail trade

After setting a record on June 20, Nvidia shares rallied as much as 36% before finding support around two previous March highs during Monday’s broad selloff last week. Since then, the stock has made a remarkable recovery to reclaim the 50-day moving average (MA) in yesterday’s trading session.

However, it is worth pointing out that the reversal occurred on below-average volume, indicating that the move may be driven by retail investors rather than larger market participants.

Looking ahead, investors should monitor several crucial levels in Nvidia’s stock price that are likely to remain in focus.

Support areas to watch

The former is at $116, about 6% below Thursday’s close. This area could provide support during initial profit-taking near a horizontal line connecting the May high with a countertrend peak that formed during the stock’s impulsive move down between mid-July and early August.

A close below that level could see the stock return to $97, which bulls in the region successfully defended during the August 5 selloff, which also closely aligns with two peaks in March that capped the move strong from January to early March.

Upward price levels to monitor

Continued near-term price momentum could take Nvidia stock to $136, where it would likely face selling pressure near the June 18 record close and July swing high, especially if other technical indicators confirm bearish conditions. overbought at the same time.

To project a new price target above the stock’s all-time high (ATH), we can use a bar pattern. We do this by extracting the trend move from April to June and applying it from this month’s low, which predicts a target around $152.

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At the time of writing, the author does not own any of the above securities.