Yahoo Finance

Key Takeaways

• Nvidia returned to the $3 trillion market cap club on Tuesday following the announcement of a major partnership with a state-backed Saudi Arabian AI company.

• The stock has trended sharply higher after breaking out from a falling wedge pattern last month, with the price staging a decisive close above the 200-day moving average on Tuesday.

• Investors should watch crucial overhead areas on Nvidia's chart around $130 and $150, while also monitoring important support levels near $115 and $96.

Nvidia (NVDA) shares will remain on watchlists after the AI favorite returned to the $3 trillion market cap club on Tuesday following the announcement of a major partnership with a state-backed Saudi Arabian AI company.

The deal, which coincided with the beginning of President Trump’s four-day tour through the Middle East, will see the chipmaker sell several hundred thousand advanced GPUs to an AI subsidiary of Saudi Arabia’s sovereign wealth fund over the next five years, starting with an AI supercomputer powered by 18,000 GB300 chips.

Nvidia shares lost more than 40% of their value between February and April amid concerns that moderating AI spending and the Trump administration’s trade policies could weigh on the company's sales. However, the stock has rallied 50% from last month's low amid optimism over new trade deals.

Below, we take a closer look at Nvidia’s chart and apply technical analysis to identify crucial price levels worth watching out for.

Decisive Close Above 200-Day Moving Average

Nvidia shares have trended sharply higher after breaking out from a falling wedge pattern last month, with the price staging a decisive close above the 200-day moving average (MA) in Tuesday’s trading session. It’s also worth pointing out today’s move occurred on the highest volume in several weeks, signaling increased interest in the chipmaker’s stock

While the relative strength index (RSI) confirms bullish momentum with a reading just below the 70 threshold, the indicator also cautions nearing overbought conditions, which could lead to short-term profit-taking.

Let’s focus on two crucial overhead areas on Nvidia’s chart that investors may be watching and also identify important support levels worth monitoring during future pullbacks.

Crucial Overhead Areas to Watch

The first area to watch sits around $130, This area, just above Tuesday’s closing price, may provide overhead resistance near a horizontal line that links a series of peaks and troughs on the chart stretching back to last August.

The bulls’ ability to reclaim this level could see the shares climb to the crucial $150 area. Investors who have averaged into the stock may decide to lock in profits in this region near several peaks that formed on the chart slightly below the stock’s record high, set in early January.