The Nvidia share price is trading slightly higher in premarket trading, with the price currently at 160.72. This follows a rejection at the 162.54 resistance in Tuesday’s trading session that led to the Nvidia share price closing at 158.36.
The recent drop in the Nvidia share price follows a broader selloff in the technology stocks amid overall market weakness that has followed the rise in consumer inflation. The acceleration in consumer inflation to 41-year highs has driven flows from the stock market to the bonds market in anticipation of a 50bps rate hike (or more) by the US Federal Reserve when the decision is made public later on Wednesday.
Also putting pressure on the Nvidia share price is the company’s decision to delay the release of its GeForce GTX 1630 and RTX 40 Series graphics cards. The delay means that the 15 June launch date for the GTX 1630 series has now been put off to a yet-to-be-determined future date.
In addition, Nvidia has also postponed the launch dates of several other graphics card series, such as the RTX 4090, RTX 4080 and RTX 4070, by up to a month. Investors responded to the announcement by selling off the stock for four days. With the Nvidia share price rejected at the 162.54 price mark, what is the stock’s outlook?
Nvidia Share Price Outlook
The breakdown of the 162.54 support by the downside gap and subsequent return move rejection at the same price level gives the stock a high potential of a drop towards the 148.33 support (22 April 2021 low). Below this level, 134.27 forms an additional price target to the south, being the site of lows last seen on 13 May 2022.
Conversely, a recovery above 162.54 is needed to save that support level. This will also give the bulls a fighting chance to send the price action towards the 178.70 resistance (26 May 2022 high). Above this level, the 193.83 resistance (6 June high) becomes the next target to the north. This will be followed by 208.62 (24 January and 24 February highs) if the price advance continues.
Nvidia: Daily Chart
