Nvidia (NVDA) shares will likely remain on investors’ radar screens after falling sharply Tuesday, just a day after setting a record closing high.

The decline Tuesday came as Bloomberg reported that the Biden Administration is mulling AI chip export curbs to some Middle Eastern countries. The news tempered optimism about surging demand for Nvidia’s chips from tech giants hyperscaling their AI infrastructure amid a backdrop of tight supply.

Nvidia shares fell 4.7% Tuesday to close at $131.60.

Below, we break down the technicals on Nvidia’s chart and identify important price levels that investors will likely be watching.

Symmetrical Triangle Breakout Lacking Volume

Nvidia shares consolidated within a symmetrical triangle between June and September before breaking out above the pattern earlier this month.

Although the breakout signals a continuation of the stock’s longer-term uptrend, it’s worth pointing out that the move occurred on below-average volume, indicating a lack of conviction behind the move.

Conversely, Tuesday’s selling registered the highest daily share turnover in nearly a month, raising the possibility of a potential bull trap, a trading event that lures investors into buying a breakout before the price makes a sudden reversal.

Let’s take a look at three important support levels on the AI chipmaker’s chart and also use technical analysis to forecast a potential bullish price target above the stock’s all-time high (ATH).

Important Support Levels to Watch

The first sits around $125, where the shares find a confluence of support from the symmetrical triangle’s top trendline and a horizontal line connecting a range of comparable trading levels on the chart between early June and late September.

A decisive breakdown below this level would confirm a bull trap, which could trigger a move down to the $115 level, where the stock may encounter buying interest near the triangle’s lower trendline and multiple minor peaks and troughs stretching back to late May.

Further selling could see the shares revisit major support around $97, a location on the chart currently just below the upward sloping 200-day moving average (MA) where investors could look for buying opportunities near the twin March peaks and prices situated just above the August low.

Measured Move Price Target

Investors can forecast a bullish price target above the stock’s ATH by using a measured move, also referred to by chartists as the measuring principle.

This works by calculating the distance between the symmetrical triangle’s trendlines near the start of the pattern and adding that amount to the breakout point.

In other words, we add $50 to $127, which projects a price target of $177. The forecast, around 34% above Tuesday’s close, indicates a potential area on the chart where investors may be happy to lock in profits.

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As of the date this article was written, the author does not own any of the above securities.