Investors eyeing up $140 near-term

Nvidia’s stock closed the session yesterday up more than 4% after the SPDR fund announced that it would lower the weighting of Apple and increase the weighting of the chipmaker, sending the share price to finish at $136.38. The gradient of this rally is becoming steeper and steeper as the days go on, with the channel narrowing further. This level of concentration could lead to increased volatility in the short-mid term. We can see the support is at the lower trendline reading $130.95 and the resistance at the upper trendline reading $140.30. It would take a 3-4% move in either direction to rattle the stock. Having said all of that, a break above $140 opens up the psychological pathway towards $150. A break below the support of $130 turns the focus towards $120. The technical indicators remain very positive, but of course now signal overbought conditions. The MACD is at its highest level its ever been in the stock’s history, and the RSI reads 79.