As Nvidia (NASDAQ: NVDA) shares continue to climb, its technical indicators suggest that a price target of $150 is becoming more attainable.
In particular, the stock’s weekly chart is forming a butterfly pattern, a harmonic design used to forecast trend reversals. This analysis indicates a possible target range of $150 to $154, as outlined in a report by Harmonic Patterns on X dated October 7.
The butterfly pattern consists of four segments, each corresponding to Fibonacci levels that forecast potential price shifts. The first segment marks a decline from Point X to Point A, establishing the initial wing. The next leg from A to B demonstrates a retracement bounce, typically around the 78.6% Fibonacci level, followed by another dip from B to C, which aligns with the 73.9% level.
The crucial C to D segment signifies the anticipated reversal point. The D point, calculated by extending the A to B distance by either 1.27 or 1.618 times, targets $153.61, suggesting Nvidia may experience a bullish movement before encountering resistance.
Scott Redler, Chief Strategist, also shared this positive technical outlook, stating in an X post on October 7 that NVDA shares might have additional upside potential if they remain above the support level of $121.90. Currently, significant resistance levels are recognized at $127.67 and $136.15.
If the stock stays above $125.02, this could foster increased bullish sentiment, putting a target of $140 within reach.
Key Fundamentals of NVDA Stock
If Nvidia stock reaches the $150 mark, it could open the door to a further goal of $200, supported by various fundamental factors, particularly the company’s involvement in the artificial intelligence (AI) sector.
In this regard, CEO Jensen Huang has recently shared insights into the company’s AI strategy. As reported by Finbold, Nvidia intends to achieve annual improvements reminiscent of the leap from Hopper to Blackwell microchip infrastructure. Should this ambition materialize, it could significantly bolster the capabilities of firms utilizing AI technologies.
Although facing competition from players like Advanced Micro Devices (NASDAQ: AMD), Nvidia’s upcoming Blackwell graphics processing units (GPUs) are expected to boost investor confidence. The company has noted a substantial demand for the product, creating a sense of urgency among clients.
Given the promise of Blackwell, Phil Panaro, a former senior advisor at the Boston Consulting Group, suggested that the revenues from the chip could drive Nvidia’s stock price up to $800 by 2030, with expected revenues reaching $600 billion in the same timeframe.
Analysis of NVDA Share Price
As of now, Nvidia has successfully maintained its price above the $125 level, recording an increase of around 1.6% over the last 24 hours. The stock is trading at $126, having surged over 5% on the weekly chart.
Overall, Nvidia exhibits a strong bullish trend. The stock is trading above its 50-day simple moving average (SMA), indicating short-term upward momentum. Furthermore, it surpasses its 200-day SMA, currently positioned at $96.13, which lends support to the long-term bullish outlook.
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