One of the most traded stocks in the market due to it’s ability to make massive moves in short order, Nvidia (NVDA), has made it on our radar for today’s trade idea. NVDA has been on quite the impressive run as of recently, climbing over $200 in just a month or two. However, it also hit a snag this week with some news dropping that was less than favorable for the stock in the short term.

On Tuesday, the United States announced it’s considering new restrictions that would limit exports of AI chips to Chinese firms, like the chips NVDA produces and is projected to sell billions worth. This may not be the death blow to the chip maker, however, it has provided a bit of a speed bump to a stock that was racing higher on the back of the AI hype train.

However, for market participants, this is exactly the kind of catalyst you like to see because it adds more volatility to an already volatile stock. For traders, this means price movement, whether it’s to the upside or the downside. The beauty of trading is we can make money either way the stock goes, which is why we are watching three key levels in order to direct our trading.

The three levels in the video below illustrate a range of possibilities for what comes next with NVDA. There is no real telling what a stock like NVDA will do in the face of news like this. On the one hand, this could very well impact to their business, but on the other, the stock may just shrug this news off as investors pour into it at a “discounted” price.

The three levels to watch are 420, 400, and 375. To the upside, watch for 420 to be broken. If that happens the stock could be well on its way again with resistance not coming into play until around the previous high of around 440. To the downside, 400 should hold as a support level, however, if that is broken in a strong downside move, 375 is the last line of defense.

Make sure you keep this stock and these levels on your watchlist as the market looks to find some strength and resume on the path of a bull market.

Learn to find these levels for yourself when you join The Profit Machine. There, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.