What Happened
The AI-driven surge in memory chip demand has powered record profits across the semiconductor sector, with Nvidia continuing to lead gains on Wall Street. The Nasdaq composite holds near 19,800, up approximately 1.1% over the past session, while Nvidia trades around $135.50 after a 2.3% advance. The S&P 500 sits at approximately 5,570, adding 0.7% on the day as tech stocks broadly rallied on strong forward guidance from chip makers.
Key Levels
Nvidia (NVDA):
Support: $128.00 (recent consolidation base), $121.50 (50-day moving average)
Resistance: $140.00 (psychological round number), $149.00 (all-time high zone)
Nasdaq:
Support: 19,200 (prior breakout level), 18,600 (200-day moving average)
Resistance: 20,000 (key psychological level), 20,400 (record high)
S&P 500:
Support: 5,480 (recent swing low), 5,320 (50-day moving average)
Resistance: 5,650 (near-term high), 5,700 (all-time high)
Technical Picture
Nvidia remains in a clear uptrend, trading above both its 50-day (~$121.50) and 200-day (~$105.00) moving averages. RSI sits near 68 โ approaching overbought territory (above 70) but not yet signalling an imminent reversal. The Nasdaq is similarly extended, with price running well above its 200-day average. Momentum is bullish, but the stretched readings warrant caution.
What Traders Are Watching
The $140.00 level on Nvidia is the immediate line in the sand โ a clean break above this with volume could see a run toward the $149 record high zone. On the downside, a close below $128.00 would suggest the rally is losing steam. For the broader Nasdaq, the 20,000 level is critical. A decisive close above it opens the door to 20,400. Traders are also watching for any earnings guidance downgrades from memory chip suppliers, which could trigger a sharp sector rotation given elevated valuations.
Bias
Cautiously Bullish โ The AI demand story remains intact and is driving real earnings growth, but with Nvidia’s RSI near overbought and cyclical risks building in the broader memory chip space, risk management around key resistance levels is essential.
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