Nvidia (NVDA) Stock Drops Following Earnings Report
On 13 November, we analysed Nvidias (NVDA) price chart and noted:
The continuation of a long-term upward channel (highlighted in blue).
A consolidation below the psychological $150 level, forming a narrowing triangle along the Quater Line, which divides the lower half of the channel.
On 20 November, Nvidia released its Q3 earnings report, which exceeded analysts expectations:
Earnings per share (EPS): $0.81 (expected: $0.74).
Revenue: $35.08 billion (expected: $33.17 billion).
Revenue growth: +94% year-on-year, +17% quarter-on-quarter.
Key Insights (via Reuters):
Optimism centres on Nvidias new Blackwell processors.
Concerns arise over a reduced revenue forecast due to supply chain constraints in chip production.
Despite strong results, Nvidias stock price dipped slightly following the report. Pre-market data suggests todays trading could start around $142.50.
Whats Next?
Technical analysis of Nvidias chart indicates potential for further downside movement, with resistance levels formed by:
The psychological $150 mark.
A Resistance line running parallel above the correction channel (JulyOctober) at a height equal to its range.
If bearish sentiment gains momentum in todays main session, it could:
Confirm a bearish breakout from the consolidation triangle.
Threaten a breach of the lower boundary of the long-term growth channel.
In a worst-case scenario, NVDA could shift into a bearish trend within a descending channel (marked in red).
Analyst Outlook:
According to TipRanks:
39 of 42 analysts recommend buying NVDA stock.
The average 12-month price target is $165.
Read more: https://fxopen.com/blog/en/oa-nvidia-nvda-stock-drops-following-earnings-report/
Text source: Forex Trading Blog
