NVIDIA's stock has been under pressure recently, experiencing a significant decline of 2.3% in a single trading day and a weekly loss of 5.8%. This is in contrast to other tech giants like Alphabet, Amazon, and Apple, which have reached new all-time highs.

Concerns about Stock Price

Analysts are concerned about the stock's price action, as it has fallen to a new low for December, marking a 12.2% drop from its all-time high in November. Technical analysis suggests the potential formation of a shoulder-head-shoulder (SKS) pattern, which could indicate further declines if confirmed.

Key Levels to Watch

Key levels to watch include:

• The 50-day moving average at USD 139.55
• The June high of USD 140.76
• The December high of USD 146.54

Support Area

On the downside, the stock's support area includes:

• The interim low from October 31
• The August uptrend line
• The August peak between USD 132.11 and USD 131.26

Potential Major Correction

If the SKS pattern is confirmed below these levels and the medium-term 100-day moving average at USD 127.72 is breached, a major correction could occur.

Market Sentiment and Investor Confidence

The market sentiment surrounding NVIDIA shares is cautious, and the stock's ability to reclaim key resistance levels will be crucial in restoring investor confidence. It is important for investors to monitor technical patterns and market dynamics in the coming weeks.