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
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.