Nvidia stock correction: watch these critical price levels

Nvidia (NVDA) shares fell for the fourth consecutive session on Tuesday, deepening their 15% decline from last month’s record high and extending into technical correction territory.

After hitting a peak in November, the stock traded sideways before breaking below its 50-day moving average last week, signaling potential for further consolidation.

Despite the recent pullback, Nvidia remains up 160% year-to-date, significantly outperforming the S&P 500’s 27% gain, driven by surging demand for its AI chips. Concerns over production delays due to overheating issues in its new Blackwell chips have tempered investor optimism heading into 2025.

Shares fell 1.2% on Tuesday, closing at $130.39.

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Key technical levels to monitor

Support levels:

• $115: Near the 200-day moving average and a key zone of past price action between May and October.
• $102: Tied to a late-May gap and troughs from August and September.

Resistance levels:

• $140: Corresponds to the June swing high and consolidation points from October to December.
• $150: Near a cluster of candlesticks below November’s record high.

Volume has picked up slightly, reflecting increased selling pressure, while the RSI below 50 indicates weakening momentum. Investors will be closely watching how the stock performs at these critical levels for further direction.