Watch the video – NVDA Stock before earnings on Aug 28, 2024. Technical analysis and price forecast. Looking for ATH:
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Historical context: NVIDIA has been on a strong uptrend since 2013, with significant momentum building in 2024, leading to a breakout from a trading range earlier this year.
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Current technical setup:
- The stock recently reached a significant all-time high around $140.76, then dipped to just over $90.
- The recent rally from that dip, is supported by technical indicators, including a verified anchored VWAP, indicating a continuation of the uptrend.
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Key levels to watch:
- Support: $115 – 1st upper standard deviation of that verified VWAP, a key level where the stock could find support if there’s a pullback.
- Resistance: $140.76 – Previous all-time high, which could act as resistance before breaking out to new highs.
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Forecast:
- Bullish outlook: My expectation is for NVIDIA to push towards a new all-time high around $157 post-earnings. Not necessaily ight away but NVDA stock will find its way there, in my opinion. Always do your own research as this is only my personaal opinion and not financial advice.
- Risk management: On the othe hand, negative surprise and a drop below $115, especially if sustained for two consecutive days, would signal a potential breakdown of the bullish trend. Then, I would look at the next key level of apx. $91, for NVDA stock price to visit that VWAP, once more, where I would be looking to buy.
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Strategy: Long-term investors might consider holding their positions, while traders should watch for potential short-term volatility around earnings. Those seeking to mitigate risk before a risky event, by definition, of an earning announcement – may consider taking some chips off the table, beforehand, for example, tommorrow on 27 Aug.
I would like to clarify my outlook – the overall sentiment is bullish, with the expectation of a new all-time high, but be alert around key support levels mentioned in the above video.
How the key points for NVIDIA’s upcoming earnings report could potentially surprise the market:
Investors and traders should always apply a balanced approach and critical thinking, even if everything looks wonderful and, perhaps, the hype is at high levels. Here are some contrarian views against my bullish case, that you may look into. Any significant negative surpises here, and the Nvidia stock price might decline after the upcoming earning call.
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Product delays: Any news on delays with the Blackwell GPUs could be a significant shock, especially if it affects future growth prospects.
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AI demand outlook: Investors are keen to hear if the AI boom will continue strong or if NVIDIA sees signs of a slowdown, which could impact future expectations.
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Profit margins: There’s a lot of focus on how much profit NVIDIA is making from AI GPUs, especially with competition increasing.
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Data center revenue: The market expects strong performance here, so any deviation could be surprising.
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Cash strategy: NVIDIA’s plans for its growing cash reserves, whether it’s buybacks, dividends, or acquisitions, will also be closely watched.
This mix of factors will likely make NVIDIA’s earnings report a critical event for investors. But, again, I have learned from my past technical analyses on NDVA stock – is to mainly look at what story the chart may persent to me, as I have explained in the above. Visit ForexLive.com for additional, original perspectives.
This article was written by Itai Levitan at www.forexlive.com.
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