The Potential Breakout of NVDA Stock
In the run-up to a potentially game-changing earnings report, Nvidia (NASDAQ: NVDA) is poised for a significant breakout in its stock, as per analysis.
A trading analyst known as Market Maestro highlighted the technical and fundamental setup of the stock in a post on August 24, indicating a potential surge to new highs post-earnings report.
- The recent dip of NVDA towards the Exponential Moving Average 12 (EMA) at $89 on the monthly chart presents a rare buying opportunity reminiscent of the 2022 market bottom.
- This correction is infrequent and signifies a crucial moment for investors.
Nvidia is approaching a critical resistance level at $129, where the 2018 resistance line intersects with the 78.60% Fibonacci retracement of the June 2024 drop.
Historically, NVDA tends to pause at such pivotal points before earnings reports. However, with a potential earnings catalyst this time, the stock seems poised to break through this resistance and continue its upward trajectory.
Nvidia Stock Fundamentals
While Nvidia’s fundamentals remain robust, the company faces logistical challenges that could impact short-term sentiment. The delayed shipment of Blackwell GPUs to Q1 2025 due to chip-on-wafer-on-substrate (CoWoS) packaging technology complexities at Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is a significant concern.
- The design issues with CoWoS-L technology led to the postponement of production for some models.
- Despite this, the expert remains bullish, viewing it as a perceived concern by Wall Street pragmatists rather than a fundamental issue hindering Nvidia’s long-term growth.
- A positive Relative Strength Index (RSI) divergence on the weekly chart between the April 2024 and August 2024 lows adds to the bullish sentiment.
- However, a slight miss in the upcoming earnings report could result in selling pressure and a potential peak pattern formation in RSI.
The upcoming earnings report scheduled for release on August 28 will be instrumental in determining NVDA’s future direction. Despite risks such as market reactions to weaknesses and GPU shipment delays, the technical setup suggests a strong earnings report could propel NVDA past the $129 resistance level towards $150.
“Based on the current technical and fundamental indicators, the earnings report due on August 28th will be decisive for the stock’s trajectory. With a positive ER, I expect it to break above $129 and progress swiftly towards the $150 target,” noted the expert.
Anticipation is growing as the AI stock approaches the earnings report, with consensus estimates projecting a surge in second-quarter revenue to $28.84 billion and net income to $14.95 billion for Nvidia.
NVDA Price Analysis
The optimism surrounding the earnings report is evident in the recent performance of NVDA, which has seen a bullish momentum pushing the stock price higher. As of the market close on August 23, NVDA was trading at $129, reflecting a nearly 5% rally in just 24 hours.
Leading up to the earnings report, it is crucial for the semiconductor giant to maintain momentum and avoid falling below $125 in the short term to build towards the $150 mark.
Hot Take: Seize the Opportunity with NVDA Stock 🚀
With the impending earnings report serving as a potential catalyst, NVDA is on the brink of a significant breakout from its resistance level of $129. By staying informed and monitoring the ongoing developments closely, you can position yourself advantageously to capitalize on the stock’s upward trajectory. Keep a watchful eye on how NVDA performs post-earnings report as it sets sail towards the $150 target.
By
By
By
By
