Important points
Nvidia (NVDA) stock rose in premarket trading Thursday after the AI chip maker reported quarterly results and guidance that beat analysts’ expectations.
The company’s closely watched data center revenue more than doubled from a year earlier in the fiscal third quarter, boosted by spending on AI infrastructure by major technology companies. Executives told analysts on a post-earnings conference call that demand for the company’s next-generation Blackwell systems is huge, the company is working to expand supply, and Blackwell’s sales are on track to exceed expectations. He said he was there.
Nvidia’s stock price has nearly doubled since the beginning of the year, driven by the company’s dominance in the AI chip market and insatiable demand for the silicon that powers its technology. Shares rose nearly 2% to about $149 in recent pre-market trading.
Below, we take a look at Nvidia’s chart and use technical analysis to identify key post-earnings price levels to watch.
Volume bright after ascending triangle breakout
Nvidia stock had been trading within a four-month ascending triangle before breaking above the chart pattern last month. Since then, the stock has continued to rise with the 50-period moving average providing support.
It’s worth noting that trading volume was low even after the breakout, suggesting that major market participants may remain on the sidelines ahead of the chipmaker’s quarterly report.
Looking ahead, we take a look at NVIDIA’s chart to identify some key post-earnings support levels that investors may be watching and whether the stock will continue its long-term upward trend. Let’s point out the possibility of a measured bullish price target to monitor.
Important support levels to be aware of
Amid the earnings-related weakness, investors should first keep an eye on the $136 level. This position could provide support near the upper trend line of the ascending triangle, an area on the chart that could potentially reverse from previous resistance to future support.
Below this level, the stock could fall to around $115, and the stock could attract buying interest near the trend line connecting the range of comparable trading levels on the chart from May to October. It becomes a certain area.
Further stock selling could impact the key $97 area. Investors may look for buying opportunities at this level near the two peaks that formed on the March chart, roughly matching prices near the early August down low.
Actual moving price target
Investors can predict chart-based target prices by applying the measurement movement technique, also known as the measurement principle, to Nvidia’s charts.
To do this, calculate the distance between the two trendlines closest to the widest points of the ascending triangle and add that distance to the top trendline of the pattern. In other words, add $50 to $136 and project a target price of $186, about 27% above Wednesday’s closing price at which investors can choose to take profits.
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As of the date this article was written, the author did not own any of the securities mentioned above.
