Watch These Key Nvidia Stock Price Levels as Selling in AI Favorite Accelerates

Nvidia (NVDA) shares will remain in focus after falling sharply Wednesday amid concerns that stricter enforcement of new energy rules in China could weigh on the AI chipmaker’s sales.

According to a Financial Times report, authorities are advising Chinese groups to use chips that meet stricter requirements in new data centers and when expanding existing facilities, potentially threating the sales of Nvidia’s less powerful H20 chip, which the company tailors to comply with U.S. export restrictions.

Through Wednesday’s close, Nvidia shares have lost about a quarter of their value since hitting their record high in January, pressured by concerns over AI spending, moderating sales growth and uncertainty over the Trump administration’s trade policies. The stock fell nearly 6% on Wednesday to finish the session at $113.76.

Below, we take a closer look at Nvidia’s chart and use technical analysis to identify key price levels worth watching out for.

Pennant Pattern Breakdown

Since setting their record high in early January, Nvidia shares have trended lower within a descending channel.

The price broke down below a pennant pattern in Wednesday’s trading session on the highest volume in more than a week, indicating a continuation of the stock’s current move lower.

It’s also worth pointing out that the 50-day moving average (MA) recently crossed below the 200-day MA to form an ominous death cross, a chart pattern that forecasts the start of a new downtrend. Moreover, the relative strength index (RSI) has moved back below the 50 threshold to signal weakening price momentum.

Let’s identify crucial support and resistance levels on Nvidia’s chart that investors may be eyeing.

Crucial Support Levels to Eye

Firstly, it’s worth keeping track of the $105 level if the shares continue to move lower. Buyers could look for entry points in this area near the March low, which also closely aligns with a range of similar prices on the chart stretching back to May last year.

Further selling could see the shares revisit lower support around $96. This region on the chart may garner support near last year’s twin March peaks, which roughly sit at the same level as the early-August sell-off low. Interestingly, this area also lies in the same vicinity as a projected bars pattern target that takes the stock’s recent impulsive move lower and repositions it from today’s pennant pattern breakdown.

Key Resistance Levels Worth Monitoring

Amid a recovery effort in the stock, investors should monitor how the price responds to the $130 level. The shares may run into overhead resistance in this area near a trendline situated just above the two moving averages that links multiple peaks and troughs on the chart extending back to the August swing high.

Finally, a decisive close above this level could drive a rally to around $150. Investors who have bought Nvidia shares at lower levels may seek profit-taking opportunities near several peaks that formed on the chart just below the stock’s record high.

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