Technical Update - NVidia jumping after earnings. But is it enough to extend uptrend? Technical Update - NVidia jumping after earnings. But is it enough to extend uptrend? Technical Update - NVidia jumping after earnings. But is it enough to extend uptrend?

Technical Update - NVidia jumping after earnings. But is it enough to extend uptrend?

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  NVidia is jumping 8% to 224 After Market following Earnings release. Will it resume uptrend or is there a reversal looming? What about the medium-term Shoulder-Head-Shoulder reversal pattern?


Read Today's Market Quick Take from the Saxo Strategy Team with comments on NVidia earnings

Nvidia is indicated to open higher around 224 (indicated by the dashed line on the chart) this afternoon following earnings release last night.
Despite the expected higher open Nvidia looks short-term a bit toppish as indicated by RSI Divergence. And with the bearish move over the past couple of days there is indication of a looming reversal in Nvidia but it is not yet confirmed. A down trend will be confirmed if buyers cannot keep momentum and Nvidia closes below yesterdays low at 204.21.
But, if buyers can lift Nvidia above 230.50 uptrend will be extended and the Inverted Shoulder-Head-Shoulder pattern will keep unfolding as illustrated on the weekly chart (and described in previous Nvidia analysis  
There is strong resistance at around 230.50 and if this week ends on a negative note i.e., drawing a bearish weekly candle there is a top and reversal pattern in place. If that picture is drawn Nvidia could drop back down to test the Neckline around 186.

The 230.50 level is key for medium-term up- or downtrend outlook. Close above there is no strong resistance until around 283. 267 is the potential target derived from the inverted Shoulder-Head-Shoulder pattern illustrated by the two vertical arrows. 
Failing to close above the scenario of NVidia testing the Neckline is likely to play out    

 

Source all charts and data: Saxo Group

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.