NVIDIA Corporation (NASDAQ:NVDA) due to report its fiscal second-quarter earnings after the market close
Here is a snapshot of Wall Street’s expectations and some recent history.
• Nvidia stock (ticker: NVDA) has risen about 17% this year, versus the S&P 500 index, which has gained nearly 17%, and the Nasdaq Composite, which has rallied roughly 21%.
• In May, Nvidia said it was difficult to predict demand in the data-center market as it withdrew the full-year guidance it had given just a few months earlier.
• The company is expected to generate adjusted earnings of $1.15 cents a share for the fiscal second quarter, compared with $1.76 in the year-earlier quarter. Analysts also estimate sales of $2.55 billion for the quarter that ended in July.
• On Tuesday, Wedbush Securities reaffirmed its Outperform rating for Nvidia shares, citing its optimism over the chip maker’s long-term opportunities in the gaming and data center markets. The firm reiterated its $184 price target for the company’s stock.
• Bank of America Merrill Lynch analyst Vivek Arya on Sunday also reaffirmed his Buy rating for the stock. “We expect Nvidia to signal a return to a normalized gaming environment,” he wrote. The analyst reaffirmed his $225 target for the stock.
• Other Wall Street analysts are generally bullish on Nvidia stock; 68% have a Buy or equivalent rating and 24% have a Hold rating, according to FactSet. Their average price target is $183.34.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 161.10.
The projected lower bound is: 139.33.
The projected closing price is: 150.21.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 38.4810. This is not an overbought or oversold reading. The last signal was a buy 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 38.41. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 14 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -79. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.
Rex Takasugi – TD Profile
NVIDIA CORP closed down -5.980 at 150.070. Volume was 2% below average (neutral) and Bollinger Bands were 33% wider than normal.
Open High Low Close Volume___
152.503 152.950 148.311 150.070 10,497,033
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 155.32 159.31 162.46
Volatility: 56 44 66
Volume: 9,708,153 9,707,431 14,141,793
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
NVIDIA CORP is currently 7.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of NVDA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on NVDA.O and have had this outlook for the last 7 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.