Nvidia (NVDA) shares will be on watchlists as the AI favorite gears up to release its 澳洲幸运5官方开奖结果体彩网:highly anticipated earnings report after Wednesday’s closing bell.

The chipmaking giant, which has a track record of blowing past 澳洲幸运5官方开奖结果体彩网:Wall Street expectations amid insatiable demand for its lineup of AI silicon, is projected to report a 73% jump in fourth-quarter revenue from a year earlier and post 澳洲幸运5官方开奖结果体彩网:net income of $21.08 billion, up from $12.84 billion.

Nvidia shares trade flat on the year, but have gained 12% this month as of Friday's close, with analysts remaining widely bullish on the chipmaker's stock as big tech hyperscalers continue to 澳洲幸运5官方开奖结果体彩网:r⭕amp up spending onꦆ AI infrastructure. The stock fell 4.1% to $134.43 on Friday amid a 澳洲幸运5官方开奖结果体彩网:broader sell-off on Wall Street.

Below, we take a closer look at Nvidia’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify cr𒀰ucial price levels worth watching out.

Shares Trade in Descending Channel

Nvidia shares have consolidated in a 澳洲幸运5官方开奖结果体彩网:descending channel since mid-December, with trading ⭕volumes declining over that period.

More recently, a 澳洲幸运5官方开奖结果体彩网:bearish engulfing pattern formed on the chart Friday, signaling a potential move lower ahead of the chipmaker’s results. Interestingly, this same 澳洲幸运5官方开奖结果体彩网:candlestick pattern has 💧appeared on two other occasions since the stock set its record high in early January, both of which preceded further selling.

Meanwhile, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) 𒐪has mimicked the priౠce, putting in lower highs since the start of the descending channel, indicating waning buying momentum.

Let’s identify several crucial 澳洲幸运5官方开奖结果体彩网:support and resistance l🀅evels on Nvidia’s chart thaꦰt investors may be watching.

Crucial Support Levels to Watch

The first lower level to eye sits around $130. The shares could find support in this area near a trendline that links the prominent August peak with troughs that formed on t✅he chart in December and January.

Selling below this location may see the shares decline to the $113 level. Investors may look for buying opportunities in this region near this month’s 澳洲幸运5官方开奖结果体彩网:swing low, which closely aligns with a range of comparable tradiꦏng levels on the chart stretching back to May last year. This area also lies just above a projected bars pattern target that takes the stock’s move lower in late January and repositions it from the descending channel’s top trendline.

A more significant post-earnings drop in Nvidia shares could bring the $102 level into play, a location on the chart where the shares may encounter support near the opening price of the late May 澳洲幸运5官方开奖结果体彩网:breakaway gap and a series of ♒prices situated aroun🐟d the August and September lows.

Key Resistance Levels to Monitor

A breakout above the descending channel’s upper trendline could initially see the shares make another attempt at the $153 level. This area on the chart would likely provide overhead resistance near the stock’s 澳洲幸运5官方开奖结果体彩网:all-time high (ATH).

Finally, investors can forecast a bullish target above the ATH by using the measured move technique, also known as the 澳洲幸运5官方开奖结果体彩网:measuring principle.

To apply the analysis, we calculate the wide of the descending channel in points and add that amount to the pattern’s top trendline. For example, we add $32 to $142, which forecasts a target of $174, a location nearly 30% above Friday’s closing price where investors may decide to 澳洲幸运5官方开奖结果体彩网:lock in profits.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.