Graphic chip designer and technology giant Nvidia (NVDA) reports their Q2 earnings numbers after the close of trading on Wednesday. I have no special knowledge of what NVDA is going to report but I do have an opinion about the stock price. Let's check.
In this daily bar chart of NVDA, below, we can see that prices were weak from November to early July. Prices rallied into early August to move above the now rising 50-day moving average line. The slope of the 200-day moving average line is still bearish.
The On-Balance-Volume (OBV) line shows a rise for about five weeks from July and into early August but it has since weakened.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal. A move below the zero line will bring an outright sell signal.
In this weekly Japanese candlestick chart of NVDA, below, we see a mixed picture. Prices are in a longer-term downtrend as they trade below the weak 40-week moving average line. The weekly OBV line made a small rise in recent weeks as part of a longer-term decline. The MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of NVDA, below, we can see a potential downside price target in the $151 area.
In this weekly Point and Figure chart of NVDA, below, we can see a potential upside price target in the $293 area. A trade at $194 is needed to refresh the upside.
Bottom line strategy: The charts and indicators of NVDA are mixed - bearish short-term and possibly bullish longer-term. With earnings coming out after the close of trading Wednesday, I would stand aside.
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