NVDA Nvidia has opened on a gap and should go lowerAfter earnings and a gap down is supportive of decreasing prices for Nvidia
NVDA trade ideas
Nvidia: DownhillNVDA has completed the green wave (X) and started descending toward our blue Target Zone between $91.30 and $76.02, which should mark the joint low of waves (Z) in green and A in beige. From this range, the beige five-wave downward move should continue, layawaying along the boundaries of our pink triangular trend channel to finish the large wave (IV) in blue. This final overarching low should take the form of a truncation, i.e., a shortened correction, and initiate a new uptrend above $137.32. However, it is 30% likely that the blue wave alt.(IV) has already concluded, which would result in a direct breakout above the $137.32 mark.
Nvidia Fails to Wow Traders. What to Make of Its Earnings ReportNvidia stock (ticker: NVDA ) is up nearly 3,000% in the past five years. Back then, in 2019, no one really cared about its earnings report as it was known mainly for its niche products targeting geeks, gamers and crypto miners. Now, when Nvidia reports, the world listens.
Everyone and their moms were glued to the screen Wednesday afternoon when the company released its quarterly earnings report. The numbers were good — triple-digit growth was there and guidance was calling for even more growth.
Yet investors proceeded to dump the stock. Big time . Shares lost as much as 10% of their valuation in after-hours trading before Nvidia fans scooped up some of those bruised gems at a discount.
Nvidia is worth $3 trillion (depending on the day) — that’s about 6% of the massive $50 trillion valuation of the S&P 500. The lofty price tag is largely due to Nvidia leading the AI boom with its chips being the hottest commodity in the tech world. As a result, Nvidia has turned into a top pick among the thousands of stocks available out there.
That gives you an idea of this stock’s important role. Markets are placing so much significance on Nvidia’s earnings update that you might as well put it on par with the jobs report or a Fed event.
Good but Not Absolutely Mind-Boggling Amazing
Analysts: We expect revenue growth of 115%.
Nvidia: Here’s 122%.
Analysts: Nooo, why not a bigger beat? Disappointed!
Nvidia posted another blockbuster quarter with $30 billion in revenue, up 122%, surpassing Wall Street’s estimates of $28.7 billion. Earnings per share landed at 68 cents a pop, up 152%, eclipsing consensus views of 65 cents. Thanks to the wide profit margins, Nvidia pocketed some $16.95 billion in net profit.
It did say, however, that gross profit margins narrowed quarter on quarter. For the three months to July 28, Nvidia generated an adjusted gross margin of 75.7%, down from 78.9% the previous quarter. Full-year gross margins are projected to sit above 75% while total revenue is expected to hit $120 billion.
With Great Returns Comes Great Responsibility
Here’s a harsh truth: the bigger you become, the higher the expectations for more breakneck growth. Nvidia’s revenue blasted by a supercharged 265% in the previous quarter. And if 122% can’t keep shares above the flatline, then Nvidia’s rapid expansion has turned against it. And by the looks of it, that growth is going to be increasingly challenged. Large-cap rivals are threatening to chip away (pun intended) at Nvidia’s dominance, potentially taking from its market share, diminishing the profit margins and pulling some of its Big Tech clientele.
For the October quarter, Nvidia chief executive Jensen Huang projects revenue of $32.5 billion, which exceeds the average consensus of $31.7 billion. But, then again, it doesn’t exceed it by a lot — and that didn’t sit well with the overly optimistic investors out there.
Not everything was above market expectations. Nvidia’s next-generation AI chip — Blackwell — still hasn’t started shipping and that unnerves some stock holders. Huang tried to assuage investor fears during the earnings call, saying that despite some design-related delays , Blackwell will ramp up production as expected and will bring in “several billion dollars” still this year. In a move to instil confidence and maybe patch things up, Nvidia authorized a juicy $50 billion stock buyback, which is a mere 2% of its market cap.
What are you doing with Nvidia’s shares? Are you a long-term holder or looking for the right entry? Maybe buying this dip? Let us know in the comment section!
NVDA: Sell idea: Pullback on vwapOn NVDA we would have a hight probability to have a downtrend because as you can see on the chart we have a pullback on the vwap indicator and also if we have the breakout with force the support line.
Nvidia still working on Minor B retracementWith earnings out and traders not getting the normal reward of new 52 week highs, we continue to subdivide lower in a primary circle wave 4 that will more than likely not bottom until next year, possibly longer. A primary wave 4 will consist of an intermediate ABC, and each intermediate label will consist of a minor ABC. We're still working on minor B...therefore, it's important that followers of my work be informed we've only just begun the primary wave 4 pattern.
In the short term, we will be in this general area for a while as it appears now we're working on a flat for Intermediate (A).
NVDA UP WE GO FROM HEREWyckoff accumulation getting confirmed with this support,
After spring was done we are getting ST or a retest on the lower line-> from here we should see a new HOD in NVDA.
In addition, BuyBack news is out so i don't see why we wouldn't be making HOD very soon
Nvidia (NVDA) Shares Fall Despite Strong EarningsNvidia (NVDA) Shares Fall Despite Strong Earnings
Yesterday, after the close of the main trading session, Nvidia released its second-quarter earnings report:
→ Earnings per share: actual = $0.67, expected = $0.647;
→ Revenue: $30.04 billion, expected = $28.737 billion;
→ The company also announced a $50 billion share buyback.
However, despite the strong results, Nvidia’s share price declined. While the closing price yesterday was above $125, in pre-market trading today, Nvidia's shares are down below $118.
The more than 6% drop may be due to:
→ The company’s future outlook not meeting investor expectations;
→ Waning bullish sentiment around AI adoption.
On 12 August, during a technical analysis of NVDA’s price chart, we noted:
→ The price was forming an upward channel (indicated in blue);
→ The $100 level was acting as support.
Assuming the bearish momentum from the earnings reaction continues, Nvidia’s shares may open trading today around $115, close to the lower boundary of the current upward channel.
New data provides crucial insights for further predictions:
→ After retreating from the $130 resistance level, the price is likely to form a broad bearish gap around the $120 level, which could act as a future resistance zone.
→ The median line of the blue channel may then act as resistance, increasing the likelihood of a bearish breakout below the channel’s lower boundary.
Meanwhile, analysts remain optimistic. According to a Tipranks survey, 33 out of 36 analysts recommend buying NVDA stock. While the average price target is $150 over the next 12 months, it’s possible that these estimates could be revised downward if bearish sentiment intensifies.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NVDA TA for 8/29/2024NVIDIA (NVDA) saw a significant drop in its stock price despite reporting strong earnings. The company posted impressive numbers with $30.04 billion in revenue, more than doubling from the previous year, and a net income of $16.6 billion. However, the stock dropped by over 5% in extended trading for a couple of key reasons:
Slower Growth Rate: Despite the strong earnings, the rate of growth has begun to slow down. The company's guidance for Q3 revenue is $32.5 billion, which, while still significant, indicates a deceleration compared to previous quarters. Investors had been accustomed to rapid growth due to AI-related demand, and the slower pace raised concerns.
High Expectations: NVIDIA has been a top-performing stock, particularly in the AI space, and expectations were exceedingly high. Even though the company exceeded its own guidance, the market was likely hoping for even more, given the stock's substantial run-up over the past year.
Technical Analysis for NVDA Trading Tomorrow
Support Levels: The immediate support level lies around $116.92, with a further significant support level at $115.01. If these levels hold, they could serve as good entry points for a long position.
Resistance Levels: Resistance is seen around $123.12 and $123.95, which correspond to previous price consolidation zones. Breaking above these levels could indicate a reversal and a potential bullish trend.
Price Action: Given the sharp decline, the price may test the $115-$116 support zone. If it holds, a bounce back toward $123 could occur. However, if it breaks below $115, further downside to around $110 or even lower could be seen.
Entry/Exit:
Long Entry: Consider entering around $116 with a stop loss just below $115, targeting an exit near $123.
Short Entry: If the price breaks below $115, consider shorting with a target near $110, setting a stop loss around $118.
Directional Prediction
Given the current sentiment and technical setup, there's a likelihood of further downside if the broader market also remains weak. However, a bounce is possible if buyers step in at the support levels mentioned. Watch for volume and price action near the support zones to gauge the market's direction.
NVIDIA Potential Downtrend Line Breakout At $130.13 29.08.2024Apply risk management
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Elliott Wave Intraday on NVDA Looking for PullbackShort Term Elliott Wave in NASDAQ:NVDA suggests that pullback to 90.7 ended wave IV. The stock has turned higher in wave V with internal subdivision as a 5 waves impulse. Up from wave IV, wave (1) ended at 109.25 and wave (2) pullback ended at 97.15. The stock has resumed higher as a nest. Up from wave (2), wave 1 ended at 108.3 and pullback in wave 2 ended at 97.52. Up from there, wave ((i)) ended at 109 and wave ((ii)) ended at 101. Wave ((iii)) higher ended at 125, pullback in wave ((iv)) ended at 121.15, and final wave ((v)) ended at 130 which completed wave 3. Pullback in wave 4 ended at 125.8 and final wave 5 ended at 131 which completed wave (3).
Stock then pullback in wave (4) towards 123.1 and made another leg higher in wave (5) towards 131.26. This completed wave ((1)) in higher degree. Wave ((2)) pullback is now in progress to correct cycle from 8.5.2024 low in 3, 7, or 11 swing before it resumes higher again. Down from wave ((1)), wave A ended at 124.37 and wave B ended at 129.18. Expect wave C of (W) to end soon, then it should rally in wave (X) before turning lower again in wave (Y) of ((2)). As far as pivot at 90.7 low stays intact, expect dips to find buyers in 3, 7, or 11 swing for further upside.
$NVDA - Can the trendline hold?NASDAQ:NVDA is likely to check back the trendline tomorrow. However, if the trendline fails to hold, it could fall to the $101 to $95 area. I'd be interested in loading up if it reaches $95 or below. 👀
NVDA Earnings Results I believe in the next 24 hours we will see a $50 billion stock buyback to $137+ and then a major correction immediately after. I think the selling pressure will be a falling knife. Leading us back into the $100-$70 range. Shaking out retail investors. This is just a prediction. Good luck!!
NVIDIA - Will The Tech Giant Surprise Again?Today is the day: Perhaps the most important company in the world presents its quarterly figures - NVIDIA! In an already volatile market environment, erratic movements are guaranteed. Can NVIDIA meet or even exceed the high expectations? More importantly, how will the share react?
Open divergences in the DMI (not shown, as M5) provide us with a clue: This shows a bearish divergence that has not yet been worked off and would be resolved as soon as the NVIDIA share price reaches the level of around USD 118.70.
We therefore expect short-term price losses. Although we are taking a bearish stance, it is quite possible that the share price will only reach this level very shortly after the publication of the quarterly figures.
Due to the expected high volatility, we refrain from showing a specific setup with SL and TP.
*Today = our location is in MEST
$NVDA Bull Flag Pattern A bull flag bullish pattern appears to be forming, suggesting potential upside momentum. The key question is whether Nvidia will break out following tomorrow's earnings report. If the results exceed expectations, it could serve as the catalyst needed to propel the stock higher, confirming the bull flag and potentially triggering a strong upward move. Traders will be closely watching for a decisive break above recent resistance levels, which could set the stage for further gains. #SPX500 AMEX:SPY NASDAQ:QQQ NASDAQ:NVDA #Nvidia #ES_F #NQ_F
Option Chain Before Earnings - $NVDA huge CALL skewThis week, keep an eye on NASDAQ:NVDA , which will release its quarterly earnings on Wednesday.
Here are this week’s earnings releases implemented by the TanukiTrade Options Overlay indicator for Tradingview:
08/28 Wednesday after market close: NVDA , CRWD , CRM
08/29 Thursday after market close: MRVL
The Options Overlay indicates that NVDA's call skew is above 55% at 54DTE, meaning that CALL options are priced 55% higher than PUT options for the binary expected move distance .
This suggests that the market is pricing in a strong upward move.
The yellow curve represents the binary expected move, while the blue curve shows the 16-delta OTM options. The green rectangle highlights the area where you can potentially profit from the butterfly trade if the earnings report meets bullish market expectations.
Upward price levels:
7/8 - 138
8/8 - 150
Downward price levels:
6/8 - 125
5/8 - 112
If you agree with the market’s bullish sentiment, one of the best R:R trades might be a directional NVDA call butterfly. You can buy it for $109 with the nearest Friday expiration, with a maximum (theoretical) profit of nearly $900. It’s worth executing this trade before the earnings announcement. Note that the green dashed line is theoretical; while it's not a traditional trendline according to classic TA, the long-term upward trend is still quite clear
Expiry: Aug 30
Legs: 1x140C -2x150C + 1x160C
Net debit: ~$100
Max profit: $890
