Nvidia Stock Analysis: Key Price Points and Technical Patterns Ahead of Major Earnings Report

Nvidia Stock in the Spotlight – Nvidia (NVDA) shares are capturing significant attention this week as the AI titan prepares to unveil its highly anticipated fiscal Q2 2025 earnings report on Wednesday. Investors are keenly watching for signs of sustained growth in the chipmaker’s data center segment and updates regarding its next-generation Blackwell chips, following recent reports of delays.

Surge in Nvidia Shares: A 43% Climb

Nvidia’s stock has soared approximately 43% from its August lows, fueled by optimistic Wall Street analysis and revised earnings forecasts. The company’s shares, which have consistently exceeded revenue and earnings expectations in recent quarters, face the challenge of delivering another standout quarterly report.

Technical Analysis: Rectangle Formation and Price Levels

Nvidia’s shares have recently consolidated within a rectangle formation, a pattern suggesting a continuation of the upward trend. Since a notable intraday reversal in early August—marking the end of a 26% correction from the stock’s record closing high—the price has largely recovered. However, trading volumes remain below longer-term averages, indicating potential caution among institutional investors before the earnings announcement.

On Friday, Nvidia’s stock closed at $129.37, marking a 4.6% gain for the day.

Support Levels to Watch

Investors should keep an eye on key support levels as Nvidia’s earnings report approaches. A breakdown below the rectangle pattern could lead the shares to test the $116 level. This area aligns with the 50-day moving average and a horizontal trendline connecting trading levels from May to July. A deeper post-earnings retracement might see the stock fall to $97, where it would likely find substantial support from two significant price peaks observed in March. This level also sits slightly above the correction low recorded during the early August market sell-off.

Resistance Areas to Monitor

On the upside, if Nvidia’s stock breaks out of the rectangle formation, it may face resistance around $136. This level coincides with the record close from June 18 and the stock’s peak in July. To forecast potential resistance above Nvidia’s all-time high (ATH), we use the measuring principle. By calculating the distance of the trend that preceded the rectangle and adding that amount to the breakout point, we project a target of $170. This level represents a possible point of selling pressure for Nvidia’s shares.

Conclusion

As Nvidia approaches its quarterly earnings report, the stock’s technical patterns and key support and resistance levels are crucial for investors. The potential for earnings-driven volatility underscores the importance of closely monitoring these price points to navigate the upcoming market fluctuations effectively.

Key Takeaways:

• Nvidia shares have surged 43% since August lows.
• The stock is consolidating within a rectangle formation.
• Support levels to watch include $116 and $97.
• Resistance areas to monitor are around $136 and potentially $170.

Stay tuned for Nvidia’s earnings report, which could significantly impact its stock performance and provide further insights into the company’s growth trajectory.

FAQ: Nvidia’s Upcoming Quarterly Earnings Report