Nvidia stock: Grounds for optimism this earnings season
17th January 2019 09:06
by Alistair Strang from Trends and Targets
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This US tech firm saw its share price plummet during the fourth quarter, linked to a decline in crypto mining. Chartist Alistair Strang looks for some logical upside movement near-term.
NVidia Corp (NASDAQ:NVDA)
We're scanning some popular US stocks, prior to their earnings reports. Traditionally, the US market exhibits a strong "buy on the rumour" tendency and, with NVidia (NASDAQ:NVDA) due to announce results in just under a month, there's a fair chance for some logical movement near term.
In the case of Nvidia, the company whose brand name apparently drives all our graphics cards, it appears optimism is possible.
At time of writing, the share is trading at around $151 and need only exceed $154 to enter a cycle, hopefully, to an initial $169.
Surprisingly, closure above $169 is liable to exert considerable force on the price with a secondary target at $215. We're fairly nervous about such a scenario, given the short timeframe until their results announcement, whereas movement to $169 makes quite a lot of visual sense.
Here ends the good news.
When we zoom out and examine price moves from a bigger picture perspective, this is actually quite dangerous if the company opts to issue a negative report.
Essentially, the price could hit $113 in a blink but worse, if it were to find reason to trade below such a level, ultimate bottom is down at 80 dollars. We cannot calculate any target below such a point, so should $80 appear, a bounce is expected.
For now, we suspect $169 shall make an appearance.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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