Los Angeles, CA – Nvidia shares are poised for a spotlight this week as the popular artificial intelligence (AI) company prepares to unveil its highly anticipated quarterly earnings report. Investors eagerly await insights into the chipmaker’s data center segment, as well as updates on its upcoming Blackwell chips following reported delays.
The company’s shares have seen a 43% surge from their August low, fueled by bullish coverage from Wall Street and rising earnings forecasts. With a track record of surpassing revenue and earnings expectations in recent quarters, Nvidia faces high expectations to deliver another impressive financial report.
Technical analysis suggests that Nvidia shares have formed a rectangle pattern, signaling a potential continuation of the upward trend. However, trading volumes have remained below average, indicating caution among institutional investors ahead of the earnings announcement.
On Friday, the stock rose by 4.6% to close at $129.37. As investors brace for potential volatility driven by earnings, attention is drawn to key support and resistance levels to monitor in the coming days.
In the event of a breakdown below the rectangle pattern, Nvidia shares could test support around $116, near the 50-day moving average. A deeper retracement post-earnings may lead to a fall towards $97, a level likely to attract significant buying interest based on previous price peaks.
On the other hand, an upside breakout could see the shares facing resistance around $136, a potential profit-taking point for investors. Using the measuring principle, analysts project a target of $170 for a possible resistance area above Nvidia’s all-time high.
While the stock market prepares for Nvidia’s earnings report, investors are advised to keep a close eye on these crucial price levels for potential trading opportunities. Remember, the information provided here is for informational purposes only, and readers should conduct their analysis before making any investment decisions.