Santa Clara, California – Nvidia, a leading AI chipmaker, is facing a potential downside reversal after its shares dropped from a record high. The company recently made headlines for its technology deal with Middle Eastern telecommunications giant Ooredoo. Thursday’s intraday reversal in Nvidia shares led to the formation of a bearish engulfing pattern, signaling a possible shift in momentum for the stock.
Investors are closely monitoring key chart levels around $119 and $110, where the stock could find support from recent minor pullbacks. Since finding support around the 50-day moving average in April last year, Nvidia shares have been on a steady upward trajectory, with investors seizing any dips as buying opportunities. However, the recent bearish engulfing pattern following the stock’s all-time high has raised concerns about a potential downside reversal.
With sentiment potentially shifting this week, investors are keeping a close eye on how Nvidia’s price action unfolds. Failure to hold support levels at $119 and $110 could signal further downside, potentially leading the shares to revisit a horizontal line near $97, connecting previous record highs.
In a separate development, Nvidia announced a partnership with Ooredoo to deploy its AI technology at data centers in five Middle Eastern countries. Ooredoo’s CEO highlighted the strategic advantages this agreement brings to its business-to-business clients, offering them access to cutting-edge services ahead of competitors. This deal comes at a time when the U.S. government has imposed stricter export controls on advanced U.S. chips to prevent China from accessing sophisticated AI technology through the Middle East.
As the market continues to react to these developments, investors are advised to keep a close watch on Nvidia’s stock performance and how it responds to key levels in the coming days. The dynamic nature of the tech industry, combined with geopolitical factors, could impact the company’s future trajectory.