Nvidia Stock Outlook: Potential Bullish Setup for a Rally

Nvidia’s recent price action is showing similarities to its movements in August-September 2024, suggesting a possible bullish setup. Currently trading at $124.29 per share, Nvidia found technical support in last Friday’s session, closing higher and forming a higher low—a key signal of potential upward momentum.

This price action, combined with the current MACD positioning, hints at the formation of a W-shaped pattern, which could pave the way for a return to all-time highs within the next two months. However, it's important to note that historical patterns do not guarantee future performance.

Key Levels to Watch

• Support Levels: The first major support level stands at $116.43, with a break below $113.04 potentially invalidating this setup and triggering a pullback toward the lower trendline of the channel.

• Resistance Levels: In the short to medium term, $130 and $140 are the key resistance levels to monitor for potential breakout opportunities.

MACD Signals Bullish Potential

The MACD indicator may be forming a higher low, indicating a possible move back above the zero line into bullish territory. If confirmed, this could signal renewed buying interest and further upside potential for Nvidia.

Conclusion

Investors should closely monitor support and resistance levels as Nvidia’s price action unfolds. A sustained move above key resistance points could confirm the bullish setup, while a break below support may signal a deeper pullback. Stay updated with the latest market trends and technical indicators to make informed trading decisions.