Nvidia's stock price has fallen for three consecutive days, with a total market cap evaporation of $430 billion. Where is the next support level?

Analysts give predictions from a technical analysis perspective: $115 and $100.

Buff Dormeier, the chief technical analyst at Kingsview Partners, believes that Nvidia's sudden decline in stock price may indicate that some investors have taken profits and left early. He said: "After experiencing good news such as Nvidia's announcement of a 1 for 10 stock split last month and the market cap reaching its peak this month, Nvidia's stock price has appeared to fall for several consecutive days, which is worrying." Dormeier believes that Nvidia's short-term support level is around $115, and the next important support level is at $100.

Since last Tuesday when Nvidia briefly became the world's largest company by market cap, as of Monday's close, Nvidia's stock price has fallen nearly 16% from its high of $140, closing at $118.1. This also makes Nvidia's stock price experience its first technical correction since April, that is, the stock price has fallen 10% or more from its recent peak.

According to Dormeier's technical analysis, if Nvidia's stock price falls to around $115, it will encounter a key Fibonacci retracement level, which is also the nearest short-term support level. Although Fibonacci retracement cannot guarantee 100% accuracy, it can provide investors with a reference idea.

Although Nvidia has fallen continuously recently, the long-term trend is still stable.

With the popularity of artificial intelligence, Nvidia's GPUs have been continuously sought after by the market. Since its financial report was released on May 22 and stock split was announced, to the historical high on June 18, Nvidia's stock price has risen 43%, and its market cap has reached $3.34 trillion, surpassing Microsoft's $3.32 trillion. Although Nvidia has fallen for three consecutive days, the cumulative increase this year is still 139%, and the long-term upward trend remains stable.

Ari Wald, the director of Oppenheimer's technical analysis, pointed out that for Nvidia, the long-term trend is more important than any specific stock price point. Currently, Nvidia's long-term upward trend is still strong, and its stock price is still far above the 50-day and 100-day moving averages of around $100 and $92, respectively.

Wald said: "Generally, the formation of the main top of a stock price requires a process, several rounds of buying and selling, and then the price momentum gradually weakens, and then the key price level will also be lost. At present, we have not found these signs."

Bruce Zaro, chief technical strategist at Granite Wealth Management, also pointed out: "For stocks like Nvidia that are in an upward trend, even if they fall below the first support level of $115, it is not a big problem, but falling below $100 will be worrying."

Zaro said: "(breaking $100) may not have a long-term impact, but it means that investors should be more patient, especially in periods when the market may experience severe volatility and a decline, because there are US elections and the Fed's interest rate decisions to help investors make further decisions."