$NVDA
Key Observations:NVIDIA Corporation is scheduled to release its fiscal third-quarter earnings today, November 20, 2024, after the U.S. market closes. Analysts are anticipating robust results, driven by sustained demand for AI and data center products.
Analyst Expectations:
• Revenue: The consensus estimate is approximately $33.1 billion for the quarter. Some analysts project higher figures, with forecasts reaching up to $38 billion. 
• Earnings Per Share (EPS): Adjusted EPS is expected to be around $0.74, reflecting significant growth from the previous year’s $0.37. 
• Data Center Revenue: This segment is projected to contribute significantly, with estimates around $29.14 billion, underscoring the strong demand for AI-related hardware. 
Key Factors to Monitor:
• Guidance for the Next Quarter: Investors will closely watch NVIDIA’s projections for the upcoming quarter. Analysts expect guidance between $37.1 billion and $40 billion, with some buy-side firms anticipating figures above $40 billion. 
• Blackwell Chip Production: Updates on the production and deployment of NVIDIA’s new Blackwell AI chips are crucial, especially in light of recent reports concerning manufacturing challenges and overheating issues. 
• Market Demand: The overall demand for AI chips, particularly from cloud service providers and data centers, will be a focal point, as it significantly influences NVIDIA’s revenue streams.
Given the high expectations, NVIDIA’s ability to meet or exceed these projections will be pivotal in determining the stock’s performance post-earnings.
Analyst Expectations:
• Revenue: The consensus estimate is approximately $33.1 billion for the quarter. Some analysts project higher figures, with forecasts reaching up to $38 billion. 
• Earnings Per Share (EPS): Adjusted EPS is expected to be around $0.74, reflecting significant growth from the previous year’s $0.37. 
• Data Center Revenue: This segment is projected to contribute significantly, with estimates around $29.14 billion, underscoring the strong demand for AI-related hardware. 
Key Factors to Monitor:
• Guidance for the Next Quarter: Investors will closely watch NVIDIA’s projections for the upcoming quarter. Analysts expect guidance between $37.1 billion and $40 billion, with some buy-side firms anticipating figures above $40 billion. 
• Blackwell Chip Production: Updates on the production and deployment of NVIDIA’s new Blackwell AI chips are crucial, especially in light of recent reports concerning manufacturing challenges and overheating issues. 
• Market Demand: The overall demand for AI chips, particularly from cloud service providers and data centers, will be a focal point, as it significantly influences NVIDIA’s revenue streams.
Given the high expectations, NVIDIA’s ability to meet or exceed these projections will be pivotal in determining the stock’s performance post-earnings.
1. Price Movement:
• Current price: $147.26 in pre-market trading, up by $0.25 (0.17%).
• Previous trading session: Price closed at $147.01, representing a strong 4.89% gain.
2. Moving Averages:
• MA20 (short-term trend): $142.23, acting as support.
• MA250 (long-term trend): $98.22, indicating a strong uptrend since the current price is well above it.
3. Bollinger Bands:
• Midline: $142.23 (coinciding with the 20-day moving average).
• Upper band: $151.15; Lower band: $133.31.
• The price is trading near the upper Bollinger Band, indicating potential overbought conditions or strong bullish momentum.
4. Relative Strength Index (RSI):
• RSI1: 59.37, RSI2: 59.05, RSI3: 58.77.
• RSI values are below 70, suggesting the stock isn’t overbought yet but is near the higher end of the neutral zone.
5. Volume:
• Volume for the recent session was relatively low (0.228 million compared to historical averages).
6. Parabolic SAR (Stop and Reverse):
• Dots are below the price, indicating bullish momentum.
7. Overall Trend:
• The stock is in a well-defined uptrend, as indicated by moving averages, Parabolic SAR, and price levels above major technical supports.
Analysis:
• Bullish Signal: The stock has been maintaining upward momentum and is trading near the upper Bollinger Band, suggesting strength. RSI confirms there’s still some room before the stock enters overbought territory.
• Caution: The proximity to the upper Bollinger Band may signal potential resistance around $151.15. A pullback or consolidation could follow if it fails to break above this level.
Considerations:
• Watch volume levels; increased volume with further price gains would confirm strong buying interest.
• Keep an eye on RSI; if it crosses 70, it may indicate overbought conditions.
• Monitor key support levels near $142.23 (MA20 and Bollinger Band midline) and resistance near $151.15.
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25+ years trading and investing. Sharing my stock ideas. Happy trading, everyone.
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OneDirection : What does the chart mean?
Xrobertm OP OneDirection : I explain this chart under price movement.