FXOpen
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.
Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
US Dollar Strengthens Following Trump’s Tariff Decision
US President Donald Trump has announced his decision to impose new tariffs:
→ For Canada, tariffs are set at 35%. They are scheduled to take effect on 1 August, although negotiations may take place before this date, potentially influencing Trump’s
Coinbase (COIN) Shares Reach All-Time High
According to the chart of Coinbase Global (COIN), the share price of the cryptocurrency exchange has reached a historical all-time high (closing price).
The bullish sentiment has been supported by the following factors:
→ Bitcoin price rally. Yesterday, we analysed the
Euro in Focus – Markets on Alert
The euro is holding firm after a notable rally in recent weeks. Both the EUR/USD and EUR/JPY currency pairs are showing signs of consolidation, as markets cautiously assess the outlook against the backdrop of a packed economic calendar.