Nvidia (NVDA) shares fell on Monday to snap a four-day winning streak following news that China's 澳洲幸运5开奖号码历史查询:Huawei Technol🔯ogies✅ is developing a rival AI chip.

The Wall Street Journal reported Monday that the Chinese company hopes the new chip could replace some of Nvidia’s high performance products, adding that it has approached several Chinese tech companies about testing the technical feasibility of the chip.

Nvidia shares are up about 25% from their early-April low but have lost around a fifth of their value since the start of the year as of Monday’s close. In recent months the AI favorite's stock has come under pressure due to concerns over significantly 澳洲幸运5开奖号码历史查询:🍨cheaper AI technology coming out𒁏 of China and a federal crackdown on the export o♔f the company’s p꧑opular H20 chips to China.

Below, we take a closer look at Nvidia’s chart and apply 澳洲幸运5开奖号码历史查询:technical analysis to identify key pric♐e level﷽s worth watching out for.

Falling Wedge in Focus

Nvidia shares continue to oscillate within a 澳洲幸运5开奖号码历史查询:falling wedge after a 澳洲幸运5开奖号码历史查询:bear trap emerged on the chart earlier this month, a trading event that lures investors to sell upon a breach of major support—the pattern’s lowe🐼r trendline in this case—before the price makes a sudden move higher.

More recently, the price has pushed up against the pattern’s upper trendline, potentially paving the way for a bullish breakout. Meanwhile, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) has crossed b𝔉ack above the 50 threshold, indicating improving price momentum.

Let’s identify two key overhead areas on Nvidia’s chart that could come into play and also locate crucial 澳洲幸运5开奖号码历史查询:support levels worth monitoring.

Key Overhead Areas to Watch

A breakout above the falling wedge pattern’s upper trendline could initially see the shares test the $115 level. This area may provide overhead resistance near the April 澳洲幸运5开奖号码历史查询:swing high, a location that also aligns with several 澳洲幸运5开奖号码历史查询:retracements on the chart stretching back to last September.

Buying above this area may trigger a move up to around $130. Investors who have bought shares at lower prices could look for 澳洲幸运5开奖号码历史查询:exit points in this region near last year’s prominent August peak and December trough. Interestingly, this location also sits just below a bars pattern projected upside target that takes the stock’s mo🌃ve higher following a prior bear trap on the chart and overlays it from this month’s low. 

Crucial Support Levels Worth Monitoring

A move lower could lead to a retest of support at $96. Investors may look for buying opportunities at this level near last week’s 澳洲幸运5开奖号码历史查询:swing low♕ and two notable peaks that formed on the chart in March last year.

Finally, a decisive 澳洲幸运5开奖号码历史查询:breakdown below the falling wedge pattern's lower trendline could see Nvidia shares revisit lower support around $87. This area on the chart may provide support near the bear trap low and lines up with a range of 澳洲幸运5开奖号码历史查询:price action between March and May last year.

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