Watch These Key Chart Levels After Bearish Engulfing Pattern
Key takeaways
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Artificial intelligence chipmaker Nvidia remains in the spotlight after shares fell from a record high hit 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 possible downward 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 the stock could find support in minor pullbacks over the past three weeks.
Artificial intelligence (AI) chip maker Nvidia (NVDA) remains in the spotlight after the stock fell from a record high hit on Thursday and the news that it will supply its technology to Middle Eastern telecoms giant Ooredoo.
Despite few company-specific announcements late last week, investors may have taken advantage of a rare moment of overall market weakness to take profits following the stock’s meteoric rise this year amid the stock boom. AI.
Monitor these levels in the middle of a bearish engulfing pattern
Since finding support around the 50-day moving average in April of last year, Nvidia stock has risen sharply, with investors seeing any dip as a buying opportunity. However, Thursday’s intraday reversal from its all-time high (ATH) created a bearish engulfing pattern, a candlestick formation that warns of a possible downward reversal, especially after a significant price advance.
If Nvidia price continues to pull back this week amid a shift in sentiment, investors can keep an eye on chart levels around $119 and $110, both areas where the stock could find support in minor pullbacks over the past three weeks. . Failure to hold these key regions could see shares revisit a horizontal line near $97 that connects several previous all-time highs.
Middle East AI tech deal
Separately, Nvidia has signed an agreement to deploy its artificial intelligence technology in data centers owned by Qatari multinational telecommunications giant Ooredoo located in five Middle Eastern countries, the Doha-based company’s CEO said. 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 the Maldives with access to Nvidia’s artificial intelligence and graphics processing technology.
“Our business-to-business (B2B) customers, thanks to this deal, will have access to services that their competitors probably (won’t have) for another 18 to 24 months,” said Ooredoo CEO Aziz Aluthman Fakhroo.
The deal comes at a time when U.S. officials have tightened export controls on advanced American chips to prevent China from accessing sophisticated artificial intelligence technology through the Middle East.
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