Watch These Nvidia Price Levels After AI Favorite’s Recent Record-Setting Streak

Nvidia (NVDA) shares hovered near their all-time highs Friday after setting a string of records earlier this week on optimism about the artificial intelligence trade.

The AI chipmaker’s stock climbed nearly 2% Friday to a fresh intraday high before pulling back in recent trading, after setting closing records Thursday and Wednesday. CEO Jensen Huang told CNBC Wednesday that AI demand has grown “substantially” in the last six months, and that he believes the AI boom is still in its early stages, leaving further room for growth. Sentiment for the stock also got a boost as Nvidia supplier TSMC (TSM) on Thursday posted a 30% year-over-year jump in third-quarter revenue.

Nvidia shares have surged nearly 40% since the start of the year, powering broader stock market gains and sending the company’s market value above $4 trillion, making it the first company in the world to achieve that feat. The stock continues to attract buying interest as its big tech customers spend billions to ramp up their AI capacity.

Below, we take a closer look at the technicals on Nvidia’s chart and identify major price levels worth watching out for.

Flag Pattern Breakout

Nvidia shares broke out from a flag pattern on Thursday, signaling potential upside above the stock’s recent trading range.

Meanwhile, the relative strength index confirms bullish momentum. The indicator also sits well below its June and July peaks, suggesting the stock has further room to trend upwards. Looking ahead, investors could watch for rising trading volume, which would point to institutional accumulation of the chipmaker’s stock.

Let’s apply technical analysis to Nvidia’s chart to arrive at two possible upside price targets worth watching, and also identify several major support levels to monitor during future retracements.

Measured Move Price Target

To project a price target using the measured move technique, investors would calculate the distance between the recent trading range’s two trendlines and add that amount to the pattern’s top trendline. In this case, we could add $20 to $184, which would produce a target of $204, about 6% above Thursday’s closing price.

Bars Pattern Analysis Price Target

Investors can also arrive at a higher price target using bars pattern analysis. When applying this to Nvidia’s chart, we extract the price bars comprising the stock’s strong uptrend from May to July and reposition them from the flag pattern’s breakout point. This generates a target of around $255, a move that implies 32% upside from yesterday’s close. We selected this prior trend as it followed an earlier comparable flag on the chart, possibly offering clues as to how a new move higher could take shape.

Major Support Levels to Monitor

During retracements in the stock, investors should keep tabs on the $184 level. Nvidia bulls would likely defend this location near the trading range’s upper trendline, potentially turning it from prior resistance into future support.

Selling below this major level opens the door for a rest of lower support around $165. Investors could seek entry points in this region near several lows that formed on the chart in July and September, which also mark the trading range’s lower trendline.

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