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Shares are up 43% from early August lows
Key Takeaways
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Nvidia stock is in the spotlight this week as the AI favorite prepares to release its highly anticipated quarterly earnings report on Wednesday. Investors will look for continued growth in the chipmaker’s data center segment and updates on the next generation of Blackwell chips.
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The AI darling’s shares, which are up 43% from their August lows, have been buoyed in recent weeks by bullish news on Wall Street and rising earnings expectations.
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The stock price has recently consolidated within a rectangular formation, indicating a continuation of the chipmaker’s rise.
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Nvidia stock may find support around $116 and $97, but faces resistance around $136 and $170.
Nvidia (NVDA) shares are in the spotlight this week as the artificial intelligence (AI) Favorite is preparing to release its long-awaited earnings report for the second quarter of fiscal 2025 on Wednesday. Investors will be looking forward to sustainable growth in the chipmaker’s data center segment and updates on the next generation of Blackwell chips after reported delays.
The AI darling’s shares, which are up about 43% from their August lows, have been boosted in recent weeks by bullish news on Wall Street and rising profit expectations. The company, which has exceeded expectations for both revenue and profit in recent quarters, is under pressure to deliver another blockbuster quarterly report.
Below we’ll take a closer look at Nvidia’s graph and usage technical analysis to identify key price points to watch amid the AI giant’s looming quarterly results.
Rectangle formation indicates continuation upwards
Since early August, an intraday reversal marked the end of a 26% decline correction From their all-time highs, Nvidia shares have recovered the lion’s share of these losses. The price has recently been consolidated within one rectangular formationwhich indicates a continuation of the chipmaker’s move higher.
However, it is worth noting that trading volumes remain below longer-term averages during the stock’s rebound, indicating potential concerns by institutional investors ahead of the company’s quarterly results.
The stock gained 4.6% on Friday to close at $129.37.
Amid the potential for earnings-driven volatility in Nvidia stock this week, investors should keep an eye on this key support and resistance levels.
Support levels to keep an eye on
A breakdown Under the rectangular pattern, shares could initially test the $116 level, an area on the chart close to the 50-day moving average, which buyers could look for. access points near a horizontal trend line connecting a range of comparable trading levels between May and July.
A deeper post-gain retracing could lead to a drop to $97, with the shares likely to receive significant support from two prominent stocks peaks which formed on the map in March. This region is also just above the stocks’ correction low during the broad market sell-off in early August.
Areas of resistance to monitor
On a positive side outbreak of the rectangle formation, shares could face resistance around $136, where they could find willing investors lock in profits close to the record high set on June 18, a level also in line with the July peak in July.
To predict a potential resistance area above Nvidia’s all-time high (ATH)we can do the measuring principle. To do this, we calculate the distance of the trend move that preceded the rectangle and add that amount to the breakout point of the formation. In this case, we add $39 to $131, which gives a target of $170, a location where the stock may come under selling pressure.
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