In the video above, I take a closer look at the technical picture for Nvidia ahead of its earnings release after the closing bell tomorrow. Nvidia shares are trading higher today after buyers leaned against the key 100-day moving average yesterday and pushed the price back to the upside.
That rebound was an encouraging sign for buyers, but the short-term technical picture remains more neutral. The price is currently trading between its 100- and 200-hour moving averages. Those two moving averages will help define the next directional move as traders position themselves ahead of the earnings announcement.
The broader market is showing a similar technical setup. The S&P 500, Nasdaq Composite and Nasdaq 100 are all trading higher today, but each remains caught between its respective 100- and 200-hour moving averages. That keeps the technical bias more neutral as the market ponders its next move.
For buyers to take greater control, the indices—and Nvidia—need to remain above their lower 200-hour moving averages and then extend above their 100-hour moving averages. Doing so would shift the short-term bias more firmly to the upside and give buyers the confidence to push toward the next targets.
Conversely, a break below the 200-hour moving averages would weaken the technical picture and shift the short-term advantage back in favor of the sellers. With Nvidia’s earnings approaching, those levels provide important technical guardrails for traders on both sides of the market.
The video outlines the specific levels in play for Nvidia and each of the major indices, while explaining why those levels matter and what traders should watch for next.
This article was written by Greg Michalowski at investinglive.com.