Upcoming Earnings

NVIDIA Corporation (ticker: NVDA) is scheduled to report earnings after the market closes on 28 August. The consensus earnings per share (EPS) estimate for the fiscal quarter ending July 2024 is $0.59. The reported EPS for the same quarter a year prior was $0.25.

+10% Gains in August

Nvidia has been on a roll lately, adding nearly +10% month to date, with price action suggesting further outperformance is on the table.

Price action moderately engulfed trendline resistance in recent trading, taken from the all-time high of US$141.00, signalling bullish intent. Further, the stock breached the upper boundary of a bullish pennant pattern, drawn from US$130.00 and US$125.81, adding to the bullish vibe for this widely traded stock.

Ichimoku Support

The Ichimoku Indicator shows price recently used the Conversion Line (blue at US$128.34) as support, which has been trading above the Base Line (red at US$122.47) since early August (another bullish signal). You will also note that the Leading Span A (light green at US$125.40) crossed above the Leading Span B (light orange at US$114.01) on 24 August, providing traders with a support zone called the Ichimoku Cloud.

Price Direction

Given the stock’s immediate uptrend and the slew of bullish signals from both price action and the Ichimoku Indicator, chart studies suggest that the stock may look to make progress above the recently breached trendline resistance. However, should a correction emerge, keep an eye on the breached barriers of resistance to offer support as well as the Conversion Line and Base Line to potentially deliver support.

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