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Nvidia shares in the spotlight after record drop
Watch these key chart levels after the bearish pattern
Source: TradingView.com
Key Takeaways
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AI chipmaker Nvidia remains in the spotlight after shares fell from a record high reached on Thursday and news that it will supply its technology to Middle Eastern telecoms giant Ooredoo.
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Thursday’s intraday reversal in Nvidia stock created a bearish engulfing pattern, a candlestick formation that warns of a potential bearish reversal, especially after a significant price advance.
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Investors can keep an eye on chart levels around $119 and $110, both areas where shares could find support due to small pullbacks over the past three weeks.
Artificial intelligence (AI) Chipmaker Nvidia (NVDA) remains in the spotlight after shares fell from a record high reached on Thursday and news that it will supply its technology to Middle Eastern telecommunications giant Ooredoo.
Despite the few company-specific announcements late last week, investors may have taken advantage of a rare moment of broad market weakness to profit making tracking stock meteoric rise this year amid the AI boom.
Monitor these levels amid a bearish pattern
Since finding support around the 50-day moving average in April last year, Nvidia shares have risen sharply, with investors viewing any dips as buying opportunities. However, Thursday’s intraday reversal from its all-time high (ATH) Created a bearish engulfing patterna candlestick formation that warns of a potential negative reversal, especially after a significant price advance.
If Nvidia’s price continues to retreat this week amid a shift feelinginvestors can keep an eye on chart levels around $119 and $110, both areas where the stock could find support from smaller investors. setbacks in the last three weeks. Failure to hold these key regions could cause shares to revisit a horizontal line near $97 that connects several previous record highs.
Middle East AI Technology Deal
Separately, Nvidia signed a deal to launch its AI technology in data centers owned by Qatari multinational telecommunications giant Ooredoo, located in five Middle Eastern countries, the Doha-based company’s CEO told Reuters in an interview on Sunday. .
While Ooredoo did not disclose the value of the deal, it said it would provide its data center customers in Qatar, Algeria, Tunisia, Oman, Kuwait and Maldives with access to Nvidia’s AI and graphics processing technology.
“Our business-to-business (B2B) customers, thanks to this agreement, will have access to services that their competitors probably (won’t) for another 18 to 24 months,” said Ooredoo CEO Aziz Aluthman Fakhroo.
The story continues
The agreement comes at a time when US authorities stricter export controls on advanced US chips to prevent China’s access to sophisticated AI technology through the Middle East.
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