Everyone in the world of finance knows Nvidia ( NVDA) is going to report its latest quarterly results after the close of trading here on Wednesday. Everyone has an opinion, and if they have bought or sold shares of of the semiconductor maker ahead of time it has registered on the charts, so let's check out the charts and indicators of Nvidia for any last-minute clues about what may be ahead for its stock.
In this daily bar chart of NVDA, below, I can see that prices have been testing the $475 area. Prices below the rising 50-day moving average line earlier in August are now above it. NVDA is above the rising 200-day moving average line and not extended above it. If NVDA was trading at twice the level of the 200-day line (around $560) I would consider it extended or overbought. The On-Balance-Volume (OBV) line shows weakness from mid-June, suggesting that traders have been more aggressive sellers of NVDA. The Moving Average Convergence Divergence (MACD) oscillator has pulled back to the zero line and is now turning upward for a new buy signal.
In this weekly Japanese candlestick chart of NVDA, below, we get a different perspective on the price action. Notice the upper shadows on a number of candles over the past six weeks? Some traders are rejecting the gains in the $475 area. A large upper shadow on the most recent candle is more dramatic. The slope of the 40-week moving average line is very strong. The weekly OBV line shows a bullish rise from October. The MACD oscillator is above the zero line but has turned lower and may be crossing to the downside.
In this daily Point and Figure chart of NVDA, below, I can see the software is projecting an upside price target in the $603 area.
In this weekly Point and Figure chart of NVDA, below, I can see an upside price target in the $635 area.
Bottom line strategy: analysts will be sitting on the edge of their chairs tonight and going over every detail of Nvidia's quarterly numbers and guidance. The charts and indicators suggest there has been some profit taking ahead of the report but not what I would consider major liquidation (selling). The short interest in this stock has declined in the latest monthly report but there is still a big short position that could power prices higher if there is a bullish surprise tonight. I have no special knowledge of what NVDA will tell shareholders, but I would not fight the longer-term uptrend.
"flow" - Google News
August 23, 2023 at 09:45PM
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Don't Go Against the Upward Nvidia Flow Ahead of Earnings - RealMoney
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