Technical Study of Fundamental Support for NVDA Earnings

14 Mei

NVDA is the GE, MSFT, or GM of prior Great Bull Markets of the past. It is overly influential; when it moves so too do most of the other semiconductor, electronic components, gaming stocks, etc. Too much importance is placed on this one lone stock. It is just one of many companies that are leading this new Great Bull Market.

However, NVDA has an earnings report due out Wednesday May 22. The black line defines the support that has held the stock even when the overall sentiment of retail groups was selling other stocks down more steeply than this one. The sideways trend is not developed enough at this time to pattern out any excessive pricing above fundamentals.

The question is where are the fundamentals right now--obviously well above the lower level outlined in blue, which was the previous fundamental support level.

The sideways support of February, outlined in orange, was the start of a fundamental support level before retail traders and smaller funds went bonkers on their excitement about NVDA beating expectations.

One good indication that fundamentals are within the current wide sideways trend is the fact that this stock has been trending back up to a narrow sideways trend, outlined in green.

Watching this stock this week can provide some more information for pre earnings run activity. Holding through to the earnings date poses higher risk as HFTs are gapping stocks down on earnings news that is not bad news but a minor weakness somewhere in the earnings report.