Educational Analysis of NVDA Weekly Chart (NVIDIA Corporation)

Disclaimer:

This analysis is for educational and informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.

Last updated: 02/18/2025

Trend Analysis:

• The chart represents NVDA’s weekly timeframe, showing long-term price movement.
• The overall trend from early 2023 to mid-2024 has been strongly bullish, with consistent higher highs and higher lows.
• However, in the later months of 2024 and early 2025, price action has shown sideways movement, indicating consolidation after a strong uptrend.

Key Support and Resistance Levels:

• Support Zones:
  • The recent pullback bottomed around $110–$115, suggesting a strong support area where buyers stepped in.
  • Another historical support zone exists around $90–$100, previously a resistance zone before breaking out.
• Resistance Zones:
  • $150–$160 has acted as a resistance level where multiple rejections have occurred.
  • If the price can sustain above this level, it could indicate a potential continuation of the uptrend.

Moving Average Indicator (Blue Line):

• A moving average (20-week EMA) is plotted on the chart, acting as a dynamic support during uptrends.
• NVDA recently bounced off this moving average, indicating that buyers may still be active.

Candlestick Patterns & Market Sentiment:

• A recent strong green weekly candle closing above the moving average suggests renewed buying interest.
• Previous bearish engulfing patterns (e.g., around September 2024) indicated strong selling pressure, leading to a short-term pullback.
• Sideways movement post-September 2024 suggests that traders are waiting for a breakout or breakdown confirmation.

Potential Scenarios (Educational Purpose Only, No Trade Recommendation):

• If NVDA breaks above $150 and holds, it may indicate renewed momentum and possible upside continuation.
• If it rejects the $150 resistance again and drops below $130, it could signal weakness and further downside potential toward $110–$115.
• Watching for a clear breakout from this range can help understand whether the market is accumulating or distributing.

Key Takeaways (For Learning Purposes):

1. Trend Confirmation:
   • Strong long-term uptrend, but currently in consolidation.
   • Moving average acting as dynamic support.
2. Support & Resistance Understanding:
   • $110–$115 is a critical support level.
   • $150–$160 is acting as resistance.
3. Candlestick Patterns:
   • Recent bounce with strong green candle may indicate buying interest.
   • Previous bearish engulfing patterns led to short-term corrections.
4. Market Psychology:
   • Traders and institutions may be accumulating at lower levels before a breakout.
   • Sideways price action suggests indecision; waiting for a breakout can provide a clearer trend confirmation.