Eye On NVDA Ahead Of Earnings Release
By
Mike Paulenoff
NVDA reports earnings after the close tomorrow (11/16). At the moment, my BIG picture setup (See my Daily Chart below) argues for more upside prior to the completion of the upmove off of the October low at 108.13 that could climb to challenge the 200 DMA, now at 182.28... However... my more granular 4 Hour Chart setup (below the Daily Chart) is telling me to lower my nearest term upside expectations to the 173-176 area and to expect a pullback toward 157-160 prior to a run at the 200 DMA near 182-183.
At the moment, my bias is for earnings to pop NVDA to new highs for the Oct-Nov. upleg, but if it is trading closer to 160 heading into earnings, my target will be 173-176, whereas if it trading closer to 168-170 heading into earnings my target is a test of the 180-182 area.
In EITHER SCENARIO, there is a high likelihood of a sell-the-news (or sell strength) reaction to a knee-jerk positive reaction to earnings atop a 55%-60% four week advance... Last is 167.72
