Nvidia shares declined on Monday after the US government announced plans to impose tariffs on major trading partners, adding to the company’s losses from last week due to concerns over Chinese startup DeepSeek’s low-cost AI model.
The move, which affects goods from China and Canada, has sparked fears of a broader global trade war that could impact American AI chips. As a result, Nvidia shares dropped more than 2% to $117 in late trading on Monday, following a 16% decline last week.
In contrast, the stock is still up about 80% over the past 12 months and has lost nearly a quarter of its value since hitting a record high in January. Investors are watching key support levels at $96, $76, and $50, while also monitoring resistance levels near $130 and $150.
The recent price action has broken down below a seven-month rising wedge pattern, suggesting institutional selling participation. The relative strength index (RSI) fell to its lowest level since December 2022, confirming increasing selling momentum.
Key support levels include the March peak at around $96, where buyers may look for entry points near the April pullback low at $76. A close below this region could trigger a more significant correction down to the psychological $50 level.
Resistance levels to monitor are near $130, where the stock could encounter selling pressure, and $150, where investors who bought during the recent selloff may look to lock in profits.
Source: https://www.investopedia.com/watch-these-nvidia-stock-price-levels-amid-continued-slump-for-ai-favorite-deepseek-tariffs-8784704