:max_bytes(150000):strip_icc()/NVDAChart-bebbc3ca5c78499096a5f5ee0fa141bc.GIF "Nvidia Stock Price Levels to Watch as Earnings Report Nears")
Key findings
- Nvidia shares are in focus this week as the AI favorite prepares to release its highly anticipated quarterly report on Wednesday. Investors will be watching for continued growth in the chipmaker’s data center segment and news on its next-generation Blackwell chips.
- Shares of the AI darling, which have risen 43 percent since their August low, have been boosted in recent weeks by optimistic reporting on Wall Street and rising earnings expectations.
- The share price has recently consolidated in a rectangle formation, indicating a continuation of the chipmaker’s uptrend.
- Nvidia stock price could find support around $116 and $97, but faces resistance at $136 and $170.
Nvidia (NVDA) shares are in focus this week as the artificial intelligence (AI) favorite prepares to release its highly anticipated second-quarter fiscal 2025 earnings report on Wednesday. Investors will be looking for continued growth in the chipmaker’s data center segment and updates on its next-generation Blackwell chips after reported delays.
The AI darling’s shares, which have risen about 43 percent since their August low, have been buoyed in recent weeks by upbeat reporting on Wall Street and rising earnings forecasts. The company, which has beaten expectations on both revenue and profit in recent quarters, is under pressure to deliver another blockbuster quarterly report.
Below, we’ll take a closer look at Nvidia’s chart and use technical analysis to identify key price levels to watch out for in light of the AI giant’s upcoming quarterly results.
Rectangle formation indicates continuation of the upward movement
Since the intraday reversal in early August that marked the end of a 26% correction from its record closing high, Nvidia shares have recovered the lion’s share of those losses. The price recently consolidated in a rectangle formation, suggesting a continuation of the chipmaker’s uptrend.
However, it is important to note that trading volumes have remained below longer-term averages during the stock’s recovery, indicating possible concerns among institutional investors ahead of the company’s quarterly earnings release.
The stock rose 4.6% on Friday to close at $129.37.
Given the potential for earnings-related volatility in Nvidia stock this week, investors should keep an eye on these key support and resistance levels.
Support levels to watch
A breakdown of the rectangle pattern could see the stock first test the $116 level, an area on the chart very close to the 50-day moving average, where buyers could look for entry points near a horizontal trendline that connects a series of similar trading levels between May and July.
A deeper drop after the earnings release could trigger a drop to $97, where shares would likely find significant support from two prominent price spikes formed on the chart in March. This region is also just above the stock’s correction low recorded during the broad-based market sell-off in early August.
Resistance ranges to be monitored
An upside breakout from the rectangle formation could see shares face resistance around $136, where investors may be willing to take profits near the June 18 record close, a level that also coincides with the stock’s July peak.
To predict a potential resistance area above Nvidia’s all-time high (ATH), we can use the measurement principle. To do this, we calculate the distance of the trend move that preceded the rectangle and add that amount to the breakout point of the formation. In this case, we add $39 to $131, which projects a target of $170, a point where shares could come under selling pressure.
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At the time of writing, the author does not own any of the securities mentioned above.
