Watch Video – NVDA Stock Pre-Earnings on August 28, 2024. Technical Analysis and Price Prediction. Find ATH:
Historical context: NVIDIA has been on a strong uptrend since 2013, with significant momentum building in 2024, leading to a breakout from the trading range earlier this year.
Current technical setup:
The stock recently hit an all-time high of around $140.76 before dropping to just over $90. The recent rally from that drop has been supported by technical indicators such as the tested anchor VWAP, pointing to a continuation of the uptrend.
Important levels to note:
Support: $115 – 1st upper standard deviation of the validated VWAP. An important level of support if the stock declines. Resistance: $140.76 – All-time high. Could act as resistance before a breakout to new highs.
forecast:
Bullish Outlook: My expectation is that NVIDIA will rally towards all-time highs around $157 after the earnings release. Not necessarily right away, but NVDA stock will get there. This is my personal opinion and not financial advice, so always do your own research. Risk Management: On the other hand, a negative surprise and a drop below $115 would signal a potential breakdown in the bullish trend, especially if it continues for a second consecutive day. I would then focus on the next key level around $91 where NVDA stock would reach its VWAP again and consider buying there.
Strategy: Long-term investors may consider holding positions, but traders should be wary of potential short-term fluctuations in earnings. Those looking to reduce risk ahead of an earnings release, a risky event by definition, may want to consider taking some stocks off the table in advance, say tomorrow, August 27th.
Let me be clear about my outlook: overall sentiment is bullish and we expect to see new all-time highs, but caution is advised around the key support levels mentioned in the video above.
Why key takeaways from NVIDIA’s upcoming earnings report could surprise the market:
Investors and traders should always apply a balanced approach and critical thinking, even if everything looks great and hype is probably at a high level. Here are some counterarguments to my bullish case for you to consider: If there is a significant negative surprise here, Nvidia stock could fall after its next earnings conference call.
Product Delays: News of a Blackwell GPU delay could come as a big shock, especially if it impacts future growth prospects.
AI demand outlook: Investors want to know whether the AI boom will remain strong or whether Nvidia is seeing signs of slowing, which could affect future expectations.
Profit Margins: Attention is focused on how much profit NVIDIA is making from its AI GPUs, especially as competition heats up.
Data Center Revenues: The market is expecting a strong performance here, so any deviations could come as a surprise.
Cash Strategy: NVIDIA’s plans for financing its growing cash reserves, whether through share buybacks, dividends or acquisitions, will also be in focus.
Due to all these factors, NVIDIA’s earnings report will likely be a key event for investors. But again, I have learned from my past technical analysis of NDVA stock that you should primarily focus on what story the charts are telling you, as explained above. For more unique perspectives, visit ForexLive.com.
