NVIDIA reported earnings yesterday after the close. And there are both fundamental and technical reasons this was different.
A Different Post-Earnings Reaction for NVDA
The results themselves were a clean beat. Revenue came in at $96.2 billion, up 106.0% year over year, with EPS of $2.22 — roughly double the year-ago figure — both ahead of the roughly $92 billion revenue expectation.
The yellow vertical lines on the chart shown of NVDA map the earnings release dates going back one year. And what’s interesting is that NVIDIA had actually declined following 6 of the previous 8 earning reports.
It’s problem hadn’t been weak numbers, but probably impossibly high expectations.So, with today’s current candle showing a 7% post-earnings rally, that’s a real change from recent behavioral pattern.
What I Was Watching Before NVIDIA Earnings
Now I’ve been sharing analysis on NVDA all week – at Tuesday’s Ticker Request Live and yesterday’s Speed Trading Workshop. And in both cases I shared it was primed to turn higher (that’s right, before the earnings announcement) based on market timing.
Remember I use a trifecta of price, time, and momentum in my trading approach.
Fresh NVDA Forecast
Given what’s currently happening with price action, momentum – especially that clean hold of the Bull Support Power Zones, I have made a new forecast. The forecast is for shares of Nvidia to trade higher towards $245.16 by Thursday, September 10th.
This is not a guarantee, just a likely magnet to pull price up and to the right. And the forecast would be invalidated if price action turns below the August 24th low at $207.25.
So Nvidia is definitely a stock you gotta watch. It doesn’t really matter what you trade. You have to keep tabs on it because of its market valuation – 5 trillion plus now – and because it’s such a heavyweight in index trading.
Not to mention it’s one of the biggest names in the AI conversation, with yesterday’s earnings release being a huge driver for AI fundamentals overall!
👉 PS — Trader Trainings Coming Up!
The Trader Training calendar has been updated! Here’s what’s on deck:
- Ticker Request Live — free weekly trading show
📅 Tuesday, Sep 1 at 4:30 PM ET - Build Your Trading Plan Using Four Zones RSI! → for members who have BOTH Four Zones and First 40 Trading Club memberships
📅 Wednesday Sep 2 at 4:30 PM ET
Visit himareddy.com/events for full details and registration.
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