What Happened
Nvidia (NVDA) shares rose approximately 3.2% to around $135.80 during Tuesday’s session after reports emerged that CEO Jensen Huang accompanied President Trump on a high-profile diplomatic visit to China. The move stoked optimism that US AI chip export restrictions โ which have weighed heavily on Nvidia’s China revenue โ could be eased as part of broader trade negotiations.
Key Levels
- Support 1: $128.50 โ recent consolidation low and the 20-day moving average
- Support 2: $121.00 โ the May swing low and a key demand zone
- Resistance 1: $137.50 โ Tuesday’s intraday high and short-term ceiling
- Resistance 2: $140.00 โ psychological round number and April swing high
Technical Picture
Nvidia is trading above its 20-day ($128.50) and 50-day ($122.30) moving averages, confirming a short-term uptrend. The RSI sits near 64 โ bullish momentum without yet being overbought (above 70). Price has been forming higher lows since the April correction, a constructive pattern for bulls.
What Traders Are Watching
A clean daily close above $137.50 would signal a breakout attempt toward the $140.00 resistance zone. Traders will also be closely monitoring any official statements from the Trump-China meetings for concrete policy shifts on chip exports. On the downside, a break below $128.50 would suggest the rally is losing steam and could invite sellers back in.
Bias
Bullish โ The combination of positive diplomatic headlines, strong technical momentum, and Nvidia’s dominant position in AI chips creates a favourable setup for further upside. However, traders should be cautious of headline risk โ any disappointment from the China talks could quickly reverse these gains.
Note: ASX-listed investors can gain indirect exposure to Nvidia through technology ETFs or global equity funds trading on the ASX.