What Happened
Nvidia (NVDA) shares surged approximately 3.2% to around $135.40 in after-hours trade following reports that CEO Jensen Huang is set to join President Donald Trump on an upcoming diplomatic trip to China. The news sparked optimism that the visit could pave the way for relaxed US export controls on Nvidia’s high-end AI chips, which have been a significant drag on the company’s revenue outlook in the Asian market.
Key Levels
- Support 1: $128.50 โ recent consolidation low and a level where buyers have stepped in over the past two weeks
- Support 2: $122.00 โ the 50-day moving average, a key technical floor watched by institutional traders
- Resistance 1: $138.00 โ the immediate overhead resistance from the late-April swing high
- Resistance 2: $145.00 โ the February all-time high zone, a major target if bullish momentum continues
Technical Picture
Nvidia is trading in a short-term uptrend after bouncing strongly off the $122 support zone in mid-April. The stock is sitting above both its 50-day ($122.00) and 20-day ($130.50) moving averages โ both bullish signals. The RSI (Relative Strength Index, a momentum gauge where above 70 signals overbought conditions) is currently near 62, leaving room for further upside before the stock becomes stretched.
What Traders Are Watching
The critical level to watch is a clean break and daily close above $138.00. If Nvidia can hold that level, the path toward $145 opens up quickly. On the downside, a drop back below $130.50 (the 20-day average) would signal the news-driven rally is fading and short-term traders may look to exit. Any official confirmation โ or denial โ of Huang’s involvement in the China trip will be the key fundamental catalyst this week.
Bias
Bullish. The prospect of eased AI chip export restrictions into China represents a significant revenue unlock for Nvidia, and the technical setup supports further upside while price holds above $130.50.