Trading Strategies for Nvidia Stock Before and After Q3 Earnings – NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation NVDA was trading lower on Wednesday as the company heads into its third quarter of 2023 profit printing after close.

When Nvidia printed a missed second quarter results on August 24, the stock opened lower the following day, but ran into a group of buyers who pushed the stock up more than 6% at the open. Nvidia then fell through the neckline of a head and shoulders pattern and entered a downtrend, which took it to a 52-week low of $108.13 on October 13.

For the second quarter, Nvidia reported earnings per share of 51 cents on revenue of $6.7 billion, missing a consensus EPS estimate of $1.25 on revenue of $8.1 billion.

For the third quarter, analysts on average estimate that Nvidia will report earnings per share of 69 cents on revenue of $5.77 billion. Traders and investors will also be watching how Nvidia guides its earnings for the next quarter and whether it sees any impending supply chain improvement.

Ahead of print, Credit Suisse analyst Chris Caso took Nvidia’s hedge and announced a price target of $210.

From a technical analysis perspective, Nvidia’s stock looks neutral ahead of the event.

It should be noted that holding stocks or options on a profit impression is akin to gambling, as stocks can react bullish to a shortfall and bearish to a beat in profits.

See also: Nvidia Stock Slips Today: What’s Happening?

The Nvidia chart: Nvidia has soared nearly 50% since reversing into an uptrend on Oct. 13. The stock’s most recent high was formed at $169.98 on Tuesday and the most recent confirmed low was printed at $137.59 on November 9.

  • On Wednesday, Nvidia was looking to print a doji candlestick on the daily chart, indicating that an upward reversal could be in the cards and the daily low could serve as the next low in the pattern.
  • If Nvidia receives a positive reaction to its earnings print and rises, bullish traders will want to see if the stock can recover the 200-day simple moving average (SMA).
  • If Nvidia is able to reach the 200-day SMA but does not break above the level, bearish traders will want to see the stock print a bearish reversal candlestick, such as a doji or shooting star candlestick, below the zone. . If Nvidia experiences a bearish reaction to its earnings print and loses the eight-day exponential moving average as support, the stock could reverse its current uptrend.
  • Nvidia has upper resistance at $180.73 and $187.80 and lower support at $161.37 and $145.75.

See also: Nvidia stock could be swept away by third-quarter earnings as technical storm casts shadow over semiconductor names

Photo courtesy of Nvidia.

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