The shares of Nvidia are trading down currently after surging by over 8% yesterday and extending to a new all-time high today. The high price reached $481.89 today.
Tomorrow after the close, the company will announce the earnings for the current quarter. Recall that last quarter they surprised the market by increasing expectations for revenues in the current quarter to $11 billion from expectations for around $7 billion. That sent the price surging by 23-24%. The price extended even higher reaching $480 in July before correcting, and $481.89 today.
With the uncertainty from the earnings announcement tomorrow, and price is still nearer the all-time high, what risk levels would tilt the technical bias more to the downside and perhaps lead to further downside corrective momentum?
In this video, I outline the key technical levels in play that if broken (and stay broken) would tilt the short/intermediate technical bias to the downside in the shares of Nvidia.
Conversely, if there is another surprise to the upside, getting above the $480/$482 area – and staying above – would open the door for further upside momentum.
Needless, to say, the trend is to the upside in Nvidia stock as it is considered THE proxy for the AI revolution/evolution. However, traders and investors always need to understand where the risk is as corrections of high-flying stocks can be very painful as well.
Be aware. Be prepared.
This article was written by Greg Michalowski at www.forexlive.com. Source