Nvidia has corrected as much as 24.48% from its all-time high of $140.76.
Its current price of $112.28 is still trading 20.23% lower than its all-time high.
Why $106.30 Could Be the Interim Bottom for Nvidia?
1) 127.2% Fibonacci Extension Support Level: Fibonacci Extension suggests a major support level at $107.25 (127.2% Fibonacci level). Yesterday's intraday low hit this level and rebounded to $112.28, indicating that the 127.2% Fibonacci level may hold (see Graph 1).
Source: Tiger Brokers
2) Doji Reversal:
Yesterday's candlestick formed a classic single doji reversal pattern (see Graph 2).
Source: Tiger Brokers
3) Closing the Gap: The low of $106.30 may represent bears trying to close the previous gap at $106.47 from May 24 (see Graph 2).
4) 38.2% Fibonacci Extension Level: Fibonacci Extension suggests that $107.51 is a major support level (see Graph 3).
Source: Tiger Brokers
What If Nvidia Stock Drops Further?
$100 is an Important Psychological Support Level
Another Major Support at $96: Nvidia previously gapped up on May 23. Further weakness in share price could bring Nvidia closer to $96.02 to close the previous gap (see Graph 4).
Source: Tiger Brokers
Conclusion:
All in all, the current price level appear attractive based on technical analysis.
However, I will turn short-term bearish if the share price closes below $106.
The next major supports are $100 and $96.02. These support levels could be good accumulation points if you have a long-term constructive view on Nvidia.
Bloomberg analysts' consensus currently shows a 12-month target price of $140.15, representing an upside of 24.8% relative to yesterday’s closing price of $112.28.
Source: Bloomberg, 26 Jul 2024
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