There’s a chance shares of NVIDIA Corporation (NASDAQ: NASDAQ:NVDA) continue to move higher. They found support around $162.50 and are rallying off of it.
There’s a reason why there is support at this level. It used to be resistance. In April 2021, shares reached this price. They ran into resistance and went lower.
But in June 2021, the resistance was broken and Nvidia traded higher. Many investors who sold at $162.50 now regret doing so. They have seller’s remorse.
A number of them decide to buy their shares back, but they will only do so if they can get them for the same price they were sold at. As a result, they place their buy orders at the level that had been resistance.
If there are enough of these buy orders, the level will convert into support. That’s what happened here.
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