NVDA breakout will help determine near-term direction

Shares of Nvidia took a hit during Thursday’s session, losing about 1.5%. Technically, the trend remains northbound, though near-term price action has shown a few lower lows and lower highs: early signs of a downtrend.

1M resistance recently made a show at US$185.23 and withstood a few upside attempts. 1M support is nearby between US$170.01 and US$174.14, with a break under here unbolting the door to another layer of 1M support from US$156.33. Alternatively, pushing above US$185.23 would help bolster the long-term trend, and potentially attract fresh buying to 1M resistance at US$207.98, closely shadowed by the all-time high of US$212.19.

Ultimately, the direction of travel for this Stock will depend on whether it breaks above resistance at US$185.23, encouraging buying, or below the support zone between US$170.01 and US$174.14, which could prompt further underperformance.

Written by the FP Markets Research Team