The share price of Nvidia and Micron are both testing/breaking key support targets
Shares of Nvidia and Micron are both trading lower today, putting key technical support levels under pressure.
For Nvidia, the stock opened higher and tested its 100-day moving average at $196.36, reaching a session high of $196.18—just shy of that key resistance level. Buyers leaned and quickly turned into sellers, driving the stock lower toward its 200-day moving average at $190.72. The decline briefly pushed below that support, reaching a low of $189.80, before buyers stepped back in. The rebound has lifted the stock back to around $191.90, placing the price once again between its two major moving averages and providing some near-term relief.
Even so, the technical picture remains fragile. Staying below the 100-day moving average keeps sellers in control, while a sustained break below the 200-day moving average would strengthen the bearish case and likely invite additional downside pressure. Nevertheless, a battle is on between the two key MA levels.
For Micron, it has also struggled throughout the early day’s trading. After opening near the highs of the day at $1,128.70, the stock rotated sharply lower, falling to a session low of $1,023.65. The decline briefly pushed the shares below Wednesday’s pre-earnings closing price of $1,048.50 and below the 100-hour moving average at $1,048.33. Those levels are significant because they represent the market’s attempt to fully retrace the post-earnings rally despite Micron’s strong earnings beat and upbeat guidance.
Since then, buyers have regained some footing, lifting the stock back above both levels to around $1,055. Like Nvidia, Micron bulls are attempting to blunt the sellers’ momentum and reestablish the uptrend.
The key level to watch remains the 100-hour moving average, currently at $1,048.41. A move back below that level could shift the focus toward the rising 200-hour moving average at $964.97, however unlikely that may seem given the earnings numbers last week. Conversely, if buyers can hold above the 100-hour moving average, today’s failed breakdown could be viewed as a bear trap and serve as a launching pad for another push higher.
This article was written by Greg Michalowski at investinglive.com.