Stock of the day: Nvidia

NVIDIA finds itself at a critical juncture as it approaches the announcement of its earnings, expected to be released after the market closes today. This position close to its long-term highs means that the anticipation is palpable among traders and investors alike. Currently, NVIDIA’s price hovers just beneath the orange horizontal resistance, a key level that, if broken, could validate a sustained bullish sentiment in the long term. Should the earnings report meet or exceed expectations, we could see the price surge above this resistance, signaling a continuation of NVIDIA’s impressive upward trajectory.

However, earnings reports are double-edged swords. Any disappointment in the results or a less optimistic future outlook could trigger a sell-off. This bearish reaction might push NVIDIA’s price below the red uptrend line, signaling the initial wave of a downtrend. A further drop below the blue neckline would complete a head and shoulders pattern—typically viewed as a strong indicator of a reversal to the downside. This could set the stage for more pronounced selling pressure in the near term.

For practical trading strategies, a key indicator will be tomorrow’s closing price. Should NVIDIA close above the orange resistance, traders would interpret this as a buy signal, suggesting continued bullish momentum. Conversely, a close below both dynamic supports—the red uptrend line and the blue neckline—would point to a sell signal, indicating a potential shift toward a bearish trend.