To The Moon

DeepSeek AI, launched in January 2025, has shaken the stock market, especially tech firms like $NVIDIA(NVDA)$ . Its advanced AI models, developed with minimal hardware, sparked concerns over declining chip demand and shifted investment outlooks in the AI sector.

Nvidia is down 9% as of time of writing, $NASDAQ 100(NDX)$ drops about 3%.

The technical analysis of NVIDIA, incorporating the premarket price movement of 27 Jan 2025:

Premarket Price Action

NVIDIA’s shares are trading down approximately 9% in premarket at 129.80 (at the time of writing), a sharp decline from the prior close of 142.62. This drop breaches the immediate support level of $141.88 (yesterday’s low) and signals heightened bearish sentiment.

Key Price Levels

• Upper Support: $129.51 – This is a critical support level which is now being tested as the premarket price is currently at $129.80.

• Lower Support: $102.72 – This deeper support level provides a secondary safety net in case of a further decline.

Trend Analysis:

• Current Trend: The chart indicates a strong uptrend characterized by higher highs and higher lows.

• Impact of Current Price Movement: Although NVIDIA is down 9% in premarket trading to $129.80, the price remains within the framework of a bullish trend. Even if it were to decline further towards the lower support at $102.72, it would still constitute a higher low within the context of the ongoing uptrend.

Technical Outlook:

• Short-Term: The immediate focus is on the $129.51 support level. As the price hovers around this mark, its ability to hold or break will be crucial in determining short-term price action. A rebound from this level could reinforce bullish sentiment, whereas a break below could lead to a test of the lower support at $102.72.

Potential Scenarios:

• Bullish Scenario: If NVIDIA sustains above $129.51, it could indicate continued buyer interest, supporting a potential recovery and continuation of the uptrend.

• Bearish Scenario: A sustained break below $129.51 could signal increased bearish pressure, potentially targeting the next key support at $102.72.

Bullish Scenario (If Price Holds or Rebounds from $129.51):

Long DLCs (e.g. $NVDA 3xLongSG261006(NVIW.SI)$ ) A long DLC allows investors to tap into bullish opportunity.

Bearish Scenario (If Price Breaks Below $129.51):

Short DLCs (e.g. $NVDA 3xShortSG261006(NVDW.SI)$ ) A short DLC allows investors to tap into bearish opportunity.

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