NVIDIA’s stock broke through the demand zone of 131.42–134.48, closing at 135.32 on May 16. This movement suggests the price could potentially rise to the 163–174 range, fueled by demand for AI data centers and institutional interest. Support is strong in the range between 115.43 and 126.48. The volume-weighted average price (VWAP) has stayed positive, indicating ongoing buying over the past months. Technical analysis shows that NVDA is re-entering a medium-term bullish channel, supported by recent highs. Key resistance levels are at 139.42, 142.47, 153.13, and the 163.40–174.45 boundary. Fundamentally, demand for AI and data centers is driving growth. In Q1, data-center revenue surged 427% year-over-year, reaching $22.6 billion. Analysts expect revenue to grow to about $28 billion in Q2, with earnings increasing through FY 2026. The trading plan includes aggressive or conservative entry points based on price trends, with clearly defined stop-losses and profit-taking strategies. Key upcoming events include earnings on May 28, updates on AI spending, and changes in geopolitical regulations affecting trade. On May 16, NVIDIA’s stock ended the trading day at 135.32, slightly above the noted demand area of 131.42 to 134.48. This suggests the price has broken through a short-term barrier, opening opportunities for further gains into the 163 to 174 range. These targets are based on previous trading patterns and rejection levels, forming reliable boundaries during strong trends, especially those driven by artificial intelligence. Below this, there is a solid support range between 115.43 and 126.48. This range held during the last pullback, showing enough buying activity to push the VWAP upwards, indicating ongoing accumulation. When VWAP remains robust and rises, it usually means there’s persistent buying interest, even on slower days. From a structural perspective, the chart indicates that the price is moving sideways before re-entering a medium-term upward channel. The momentum is clear, with higher highs and higher lows now visible. Key resistance levels based on price trends are at 139.42, 142.47, and higher at 153.13, with the breakout channel peaking near 174. These levels aren’t just psychological—they have been tested before, and sellers may appear at these points again. Looking deeper into the numbers, the growth stems from NVIDIA’s expanding role in AI infrastructure. In the first quarter, data-center revenue—critical for AI computing—jumped 427% year-over-year to $22.6 billion. Analysts foresee nearly $28 billion in the upcoming quarter, aligning with a trend of upward revisions. This growth isn’t mere speculation; it’s supported by actual orders and deployment capabilities, which boost earnings projections for the next two financial years. For traders focusing on derivatives, price movements should be closely linked to defined risk limits and strategic entries. The outlined strategy accommodates both aggressive entries during breakouts and cautious setups when pulling back to support, with clear stop-loss limits. Profit targets are established at each resistance point, providing several opportunities to manage partial exits based on trading goals. We should pay close attention to important dates, especially May 28, the day of the earnings release, as it could significantly impact expectations. Additionally, updates on AI spending or changes in trade regulations could increase market volatility. These external factors can influence the trend but will need to be factored into any options strategies or hedging plans.

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