The top GOP House China committee member in a letter to US Commerce Secretary Howard Lutnick, said that he objects to resumption of Nvidia H20 chip shipments to China. The shares are sharply higher this week on the re-opening of China to the chips.
Nvidia shares are lower on the day
Shares of Nvidia reached a new all-time high yesterday of $174.25. Shares are currently down -$0.60 or -0.34% at $172.37. For the trading week, shares have surged by 4.54%. For the trading year, the price is up 28.29%.
For your guide, Nvidia is not scheduled to release earnings until August 27.
Since bottoming in April, Nvidia’s price action has been steadily climbing, and more recently, has remained above its 50-hour moving average, currently at $167.69 (black line on the chart above). Beneath that, the rising 100-hour moving average (blue line) at $162.56 offers a secondary layer of support.
Back in June, corrective dips took the price below the 50-hour MA, but consistently found buyers leaning against the 100-hour MA, reinforcing its significance as a reliable support zone during pullbacks. Stay above those moving averages kept the buyers firmly in control.
Looking ahead, these two moving averages define nearby support. Holding above keeps the short-term bias tilted higher, while a break below both could signal a deeper corrective move. Traders will be watching these levels closely for clues on the next directional push.
With the price so high, a corrective move is not out of the question (look at Netflix whose shares are down -4.88% today). However, all indications are that spending for AI continues and will continue to be very strong as the AI revolution builds. Traders will be watching the support defining levels – like the moving averages – for trading clues at least in the short term. Staying above like the price has been doing keeps the buyers firmly in control. Moving below the short-term bias tilts more to the downside as long as price remains below. Focus will then shift toward other corrective targets to see how far the correction can go.
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