Stock of the day: Nvidia
28 August 2024
Today, all eyes are on NVIDIA as the company prepares to release its earnings report after the market closes. So, what are the charts indicating ahead of this highly anticipated event? Over the past few days, the price has been moving sideways, suggesting a wait-and-see approach from traders. The price is currently confined within a rectangle pattern, marked in black, with resistance around the psychological level of $130 and support near $123.
The strategy here is straightforward: if NVIDIA delivers strong earnings and offers a positive outlook for the coming quarters, we could see a bullish breakout above the rectangle, signaling a buying opportunity. Conversely, if the earnings disappoint or guidance is weaker than expected, a break below the lower line of the rectangle would indicate a sell signal. We'll need to keep a close watch on these key levels to gauge the market's reaction.