Over the last five trading sessions, Nvidia’s stock has gained more than 9%, and short-term bullish momentum remains intact as the tech giant appears to benefit from expectations of a potential easing in trade war tariffs. Notably, the company’s CEO, Jensen Huang, recently stated that the Chinese market for artificial intelligence chips could reach $50 billion within the next two years — highlighting the importance of maintaining access to this market. This reinforces the view that a diplomatic resolution to the trade conflict is crucial for Nvidia to sustain a steady recovery.
It’s also important to note that Nvidia is scheduled to release its next earnings report on May 28, with market expectations pointing to earnings of approximately $0.88 per share. Should results meet or exceed projections, this could reignite a bullish sentiment that has been largely absent from the stock over the past several months.
Bearish channel still in play:
Since early January of this year, Nvidia’s stock has formed a steady downward channel, pushing the price even below the $100 mark at times. While a consistent upward correction is underway, it remains insufficient to confirm a definitive breakout, meaning this bearish channel is still the dominant technical structure in the short term.
ADX:
The ADX indicator has been fluctuating below the neutral 20 level, signaling a decline in volatility over the average of the last 14 sessions. As long as this continues, the current phase of price neutrality may persist.
RSI:
The RSI is showing a similar picture, hovering near the 50 level — indicating a balance between buying and selling momentum in recent sessions, and reinforcing the lack of a clear short-term trend.
Key levels to watch:
Written by Julian Pineda, CFA – Market Analyst
It’s also important to note that Nvidia is scheduled to release its next earnings report on May 28, with market expectations pointing to earnings of approximately $0.88 per share. Should results meet or exceed projections, this could reignite a bullish sentiment that has been largely absent from the stock over the past several months.
Bearish channel still in play:
Since early January of this year, Nvidia’s stock has formed a steady downward channel, pushing the price even below the $100 mark at times. While a consistent upward correction is underway, it remains insufficient to confirm a definitive breakout, meaning this bearish channel is still the dominant technical structure in the short term.
ADX:
The ADX indicator has been fluctuating below the neutral 20 level, signaling a decline in volatility over the average of the last 14 sessions. As long as this continues, the current phase of price neutrality may persist.
RSI:
The RSI is showing a similar picture, hovering near the 50 level — indicating a balance between buying and selling momentum in recent sessions, and reinforcing the lack of a clear short-term trend.
Key levels to watch:
- $113: Current resistance level, aligned with the upper bound of the bearish channel and the 50-period simple moving average. Continued price action in this area may extend the current phase of consolidation.
- $125: A critical resistance point tied to the 200-period simple moving average. A breakout toward this level could signal the end of the bearish channel.
- $100: A key psychological support level in the short term. A move below this threshold could reinforce the bearish bias and trigger a deeper downtrend within the current price structure.
Written by Julian Pineda, CFA – Market Analyst
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.