Nvidia (NVDA) is set to release its highly anticipated earnings report after Wednesday’s closing bell, with investors closely watching whether the AI-driven chipmaking giant can once again surpass Wall Street expectations. Analysts project a 73% surge in fourth-quarter revenue to $21.08 billion, up from $12.84 billion a year earlier.
Stock Performance and Market Sentiment
Despite a flat performance year-to-date, Nvidia shares have gained 12% this month as of Friday’s close, reflecting strong bullish sentiment. However, the stock fell 4.1% to $134.43 on Friday amid a broader market sell-off. Analysts remain optimistic, citing continued AI infrastructure investment by major tech firms.
Technical Analysis: Key Support and Resistance Levels
Nvidia shares have been consolidating within a descending channel since mid-December, with declining trading volumes. A bearish engulfing pattern formed on Friday, a potential signal of further downside, mirroring previous occurrences that led to additional selling pressure. The RSI indicator also suggests weakening buying momentum.
Support Levels to Watch
$130: A key support level near a trendline connecting the August peak and troughs from December and January.
$113: Aligns with this month’s swing low and historical trading levels dating back to May 2023.
$102: A major support zone near the late May breakaway gap and August-September lows.
Resistance Levels to Monitor
$153: The stock’s all-time high (ATH), likely to act as strong overhead resistance.
$174: A potential breakout target, calculated using the measured move technique by adding the descending channel’s width to its upper trendline.
Outlook Ahead of Earnings
With Nvidia’s earnings report looming, investors are watching whether strong AI demand can drive another beat-and-raise quarter. A breakout above the descending channel could signal renewed bullish momentum, while a post-earnings sell-off may test key support levels.
