The stock price of semiconductor giant Nvidia (NASDAQ: NVDA) has experienced a minor pullback in the short term, failing to move past the $130 resistance level.
Overall, the stock is expected to resume a bullish trend after the earnings call slated for August 28. By the close of markets on August 26, NVDA was down over 2%, trading at $126. Despite the short-term fluctuation, the stock remains green, gaining over 13% in the past few months.
Nvidia’s price prediction
Meanwhile, as anticipation builds ahead of the earnings call, stock trading expert Peter DiCarlo suggested in an X post on August 27 that investors should expect continued pullback for NVDA around the earnings announcement.
According to DiCarlo, while the stock has experienced a pullback, there is a strong indication that a technical pattern known as a “squeeze” is still underway. This pattern often precedes significant price movements, either up or down, and traders are watching closely.
NVDA stock price analysis. Source: TradingView/PerterDiCarlo
DiCarlo outlined a “worst-case” scenario for Nvidia’s stock price, predicting it could drop to $120 by Wednesday evening. This forecast is based on recent price action and technical analysis. However, he was quick to add that the weekly chart for Nvidia shows “massive bullish accumulation,” suggesting that the broader trend remains positive.
“Worst case, I’m expecting a pull back to $120 by Wednesday evening. With that said, weekly chart is showing massive bullish accumulation,” the expert noted.
NVDA stock price analysis. Source: TradingView/PerterDiCarlo
The analysis indicates a series of red and green candles, reflecting the tug-of-war between bulls and bears as the equity has built up buying pressure over the past few weeks. Some signs of selling have emerged recently. This aligns with DiCarlo’s analysis of a potential short-term pullback before earnings.
Looking ahead, the expert remains optimistic about Nvidia’s post-earnings performance. Provided the company’s financials meet or exceed market expectations, he expects the stock to trade between $150 and $160 after the earnings report.
Impact of Nvidia’s earnings
It’s worth noting that ahead of the earnings call, analysts have maintained that the event is viewed as the most important in the technology world, with significant ramifications for the overall sector. If the results surpass analysts’ expectations, any concerns about an AI bubble burst could be delayed.
Overall, Nvidia is expected to announce that its quarterly sales have more than doubled, even as year-on-year growth slows. Analysts predict the chipmaker will report $28.7 billion in revenue for the quarter, representing an increase of more than 100% from the year before.
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