Nvidia (NVDA) is set to release their earnings report after the market closes, and while technical analysis may not always provide a clear advantage right before an earnings announcement, it still offers valuable insights. Monitoring how the stock reacts to news, whether positive or negative, can reveal more about market sentiment than the news itself. Currently, NVDA has broken out above the $915 level and is in breakout mode, with a target of $1,075 if the stock maintains its upward momentum.
Looking at past big reactions to earnings, NVDA has experienced significant moves in the days following earnings announcements in recent years. While buying before earnings carries its risks, buying after a big reaction has also proven to be a successful strategy as the stock tends to respect its bullish gaps and use them as support. This suggests that the market views these gaps as important levels.
Considering the long-term outlook, NVDA has had a notable history of success in both its business operations and stock performance. The stock is on track to achieve its sixth consecutive quarterly advance and has seen substantial gains in recent years, particularly during a period from 2015 to 2018 when it rose for 13 consecutive quarters. This strong track record indicates that a single earnings report is unlikely to significantly alter the stock’s overall trajectory.
Overall, while technical analysis may not always provide a clear direction ahead of an earnings announcement, understanding the current chart setup, analyzing past reactions, and considering the long-term performance of the stock can offer valuable insights for investors. It is important to remember that any financial decision should be made with careful consideration of individual circumstances and advice from a financial advisor.
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https://www.cnbc.com/2024/05/22/the-key-levels-to-watch-on-nvidias-stock-chart-with-its-big-earnings-report-almost-here.html