Caifengsheng Report, September 5th (Editor: Liu Rui) With the continuous decline in stock prices in recent days, the focus of the U.S. stock market has almost all been on this "most important stock on earth". $NVIDIA (NVDA.US)$ With the continuous decline in stock prices in recent days, the focus of the U.S. stock market has almost all been on this "most important stock on earth".

On Wednesday, Eastern Time, Nvidia's stock price fell by 1.66%, which means that the stock has fallen by 16% in the past week. The question of when it will hit bottom is a key concern for many.

Some technical analysts on Wall Street have indicated that Nvidia's stock currently has two key support levels that could provide crucial support for its stock price, but if these levels are broken, it could directly break its long-standing market leadership position.

Key support level

First is the psychological level of $100. Second is the very important 200-day moving average, which is currently slightly below $90, a level that is also close to the low point on August 5.

On Wednesday, Eastern Time, Nvidia's stock price fluctuated between $104 and $110, closing at $106.2.

"Nvidia's 200-day moving average is currently around $89, also converging with the intraday low on August 5th. So for us, there is no change in the long-term trend of Nvidia's stock price above this support level," said Ari Wald, a technical analyst at Beijing Worldia Diamond Tools.

Since January 2023, Nvidia's stock price has been above its 200-day moving average. And if Nvidia's stock price approaches this level, Wald will consider it as an opportunity to "buy the stock and enjoy the complete uptrend."

Clearly, Wald is still relatively optimistic about Nvidia's stock price prospects. He said he was not surprised by the recent weakness in Nvidia's stock price, as September is traditionally a weak period for the overall U.S. stock market.

However, Katie Stockton, the founder of Fairlead Strategies, is less optimistic. In her view, Nvidia's stock price seems exhausted and may undergo a period of consolidation.

"From the perspective of overbought/oversold, Nvidia is showing signs of exhaustion in its mid-term and long-term upside potential. We expect these stocks to need several months of digestion."

However, Stockton believes that if Nvidia's stock price can find significant support around the key support level of around $90, the stock still has the potential to rebound and eventually break through the resistance level of $130. This means there is at least 19% upside potential from the current level.

Are there some ominous signs?

Adam Turnquist, a technical strategist at LPL Financial, mentioned that Nvidia's stock price has shown some slight ominous signs in recent weeks: the stock failed to reach the high of July in August, and also dropped below the 20-day and 50-day moving averages.

"Based on the volume and momentum indicators, there will be more downside risks in the future. The support levels for NVIDIA are around $100 (psychological level and August low point), $95 (March high point), and $88.50-$90.69 (200-day moving average/August intraday low point)."

According to Ternquist, if NVIDIA falls below the August intraday low point of $90.69, there may be danger in the future:

"If it falls below the August low point, it will suggest that NVIDIA may lose its market leadership position."

Editor/Somer