Nvidia: up for a gain?
What’s happening
Nvidia is reporting its Q1 earnings on May 26 Midnight/May 27 00:00 GMT +3
What’s the expectation
EPS forecast: $2.62
Most observers expect a strong report from Nvidia. The company already disclosed a preliminary estimation of April performance which is said to be upbeat. That is due to a particularly strong videogame industry position.
You can trade NVIDIA in FBS Trader
What’s in the store now
On May 21, Nvidia announced a 4-for-1 stock split. Upon the announcement, the stock price rose some 5%. Currently, it trades under $645 – the all-time high which is likely to get beaten if investors like the earnings data. In this case, the zone above $650 may be the likely target.
However, the upward channel market in the image is very strong: it has been valid for more than half a year by now, and will likely stay so – even if the stock breaks through the upside on a positive earnings report.
What’s the scenario
- Upon a strong report, the stock goes up beating or re-establishing its position around the all-time him of $645.
- Later on, the stock moves down in a correction to possibly meet the 50-MA around $585.
- Eventually, the stock will reverse to the upside continuing the upward channel and possibly aiming at $670 within the horizon of two weeks.
