Nvidia is trending higher and using the moving averages as risk/bias defining levels

Shares of Nvidia continue to trend to the upside, with the price pushing above the prior record closing high of $173.00 (from July 17). In early trading, the stock is holding just above that mark, trading near $173.10.

Earlier this week, however, price action wasn’t one-way. On Tuesday, Nvidia shares saw a sharp drop, falling from Monday’s high of $173.17 to a low of $164.58. That move tested key technical support — buyers stepped in near the moving averages, sparking a strong rebound.

This bounce followed a consistent pattern seen on the hourly chart going back in time. Looking at the hourly chart in the video above:

• Dips have repeatedly found support at the 50-hour moving average, or — if that level is broken — at the 100-hour moving average.

• These moving averages have defined the bullish bias and served as clear risk management points for traders.

Understanding where bias flips is critical: as long as price remains above these moving averages, the bullish trend stays intact. A break below would shift the short-term bias to the downside — a different trading story entirely.

In the video above, I walk through these key technical levels on the Nvidia hourly chart, and explain why tracking them is crucial. As traders, knowing your risk is more important than chasing reward. If you’re not “risked out” (i.e., the price stays above the MAs), you can stay with the trend. But if those support levels give way, it’s time to reassess.

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This article was written by Greg Michalowski at investinglive.com.



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