Nvidia’s shares will be on watchlists ahead of its highly anticipated earnings report after Wednesday’s closing bell. A bearish engulfing pattern formed on the chart, signaling a potential move lower before the results are announced.
Investors should monitor crucial support levels around $130, $113, and $102, while also watching key resistance levels near $153 and $174. The chipmaker is projected to report a 73% jump in fourth-quarter revenue and post net income of $21.08 billion.
Nvidia shares trade flat on the year but have gained 12% this month. Analysts remain bullish on the stock as big tech hyperscalers continue to ramp up spending on AI infrastructure. Despite this, the stock fell 4.1% to $134.43 on Friday amid a broader sell-off on Wall Street.
The shares have consolidated in a descending channel since mid-December, with declining trading volumes. A bearish engulfing pattern has also appeared on two other occasions before further selling, indicating waning buying momentum.
Investors should look for support near $130, where the shares could find a trendline linking to August’s peak and December’s troughs. Selling below this area may see the shares decline to $113. Alternatively, they may look for buying opportunities around $102, which lies just above a projected bars pattern target that takes the stock’s move lower in late January.
Key resistance levels include $153, where a breakout could lead to another attempt at the all-time high (ATH). Investors can forecast a bullish target of $174 by using the measured move technique, adding $32 to the channel’s top trendline.
Source: https://www.investopedia.com/watch-these-nvidia-stock-price-levels-with-earnings-report-set-for-release-wednesday-11684900