Analysis of the Nvidia (NVDA) Share Chart
Last week, we published a post titled ?Ahead of Nvidia?s (NVDA) Earnings: How the Price Could Move?, in which we:
→ Drew an ascending channel (shown in blue);
→ Suggested that market participants? overly high expectations would likely not be met when earnings were released, leading to a decline in NVDA?s price towards the lower boundary of the ascending channel, where support lies at $165.
In reality, the earnings report turned out to be very strong:
→ Gross revenue: actual = $57bn, forecast = ~$54.9bn.
→ Earnings per share (EPS): actual = $1.30, forecast = $1.26 (previous quarter = $1.05).
The surge in price with a bullish gap towards point A reflected the initial reaction to the strong figures, but the share price then began to fall (reaching a two-month low), thereby confirming our expectations.
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