US major indices are lower with the Dow down for the 9th consecutive day. The Nasdaq closed at a record level yesterday but with no help from Nvidia which is now in correction mode after falling more than 10% from its all-time high reached on November 21 at $157.89.
The Nvidia price gapped lower at the open, following yesterday's low of $130.42 and close at $132.00. Today, it opened at $129.09 and dropped to a low of $127.22, briefly falling below the 100-day moving average (MA) at $128.07.
Currently, the price has rebounded to $128.66, with today's high reaching $129.61. Traders will be watching yesterday's low at $130.42 as a key resistance level. A move above this level could restore short-term buyer confidence. Conversely, a break back below the 100-day MA would signal further bearish pressure in the short term.
On the hourly chart below, a key swing area lies between $131.26 and $132.30 (highlighted by the red numbered circles and yellow zone). A break above this range is crucial to easing short-term selling pressure and could signal a potential shift in momentum for the stock.
If things start to unravel technically in the pair, the 200 day MA is currently at $115.73. THe price of Nvidia has not traded below the 200 day MA since January 2023 when the price was near $16.30.
