Nvidia Price Forecast – NVDA Waiting For Crucial Earnings Report

NVIDIA Technical Analysis

You can see that Nvidia has been consolidating over the last couple of trading days and of course, Monday was Presidents Day in the United States so there was no movement. Tuesday looks set to open up with a little bit of consolidation, mainly I believe due to the fact that Wednesday is an earnings call and that of course will have a massive influence on what happens next.

Nonetheless, this is a market that has rallied almost 50% in less than two months. That’s not normal behavior and unfortunately, this is probably where Wall Street says, here, hold my bags, because retail traders love to chase these markets after they’ve moved like this, but if you think about it, it doesn’t make any sense. It’s like going and buying a television set that is now double the price because it’s going up in value instead of just waiting for it to become a reasonable price.

With the earnings call coming out on Wednesday, it’s going to be interesting to see how this plays out because a lot of people on Wall Street are expecting another blowout quarter. Consensus is that the EPS should be about $4.60 and a revenue of over $20 billion. That would be year over year growth of 422% and 236% respectively. The biggest concern that I think a lot of traders are going to have is that perhaps there’s a miss because given enough time, this report, even if it comes in line, probably won’t be enough to move the stock.

And at this point in time, you have to look at a couple of potential levels underneath. I think the most obvious one would be 650, mainly due to the fact that it’s a round number, more than anything else. There’s probably even more support down at 635. We could pull back to 650 that’s losing a little less than $100 a share and it still would look extraordinarily bullish. On the other hand, the 50-day EMA is all the way down at $600 and this thing is going to be overbought by just about any metric that you can imagine. If you take a look at the RSI, the Relative Strength Index, you will see that we are well above the overbought 70 condition, so keep that in mind as well. If you’re going to want to buy in Nvidia, you probably want to see this thing pullback.

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