Nasdaq 100 Consolidates Ahead of Nvidia Report

Today, after the main trading session ends, Nvidia (NVDA) – the second-largest company by market capitalisation and the leader of 2024 amid the AI boom – will release its second-quarter earnings report.

It’s reasonable to assume that market participants are anticipating this event, which will likely trigger a surge in market volatility:
→ Nvidia shares (NVDA) have been fluctuating within the $123.50 – $131.00 range since 19 August;

→ Signs of anticipation are also evident on the technology index chart.

A technical analysis of the Nasdaq 100 chart (US Tech 100 mini on FXOpen) shows that:

→ Starting from the 3-month low formed on 5 August, the recovery has created an ascending channel (shown in blue) – with the price in the upper half of the channel, indicating steady demand.

→ However, as the NVDA earnings report approaches, the price has retreated from the upper boundary and dropped towards the median (as indicated by the red lines). This could suggest a Bullish Flag pattern (a pattern of intermediate correction within an uptrend).

→ A concerning factor is that the growth rate slowed after the price surpassed the 1 August high. The psychological level of 20,000 points could also be acting as a barrier to further growth within the blue channel.

In the event of a strong Nvidia (NVDA) report, the Nasdaq 100 index price (US Tech 100 mini on FXOpen) could break out of the Bullish Flag and continue its upward movement within the ascending channel. However, if the company disappoints, the price could drop to the lower boundary of the channel or even attempt a bearish breakout.

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