Nvidia (NVDA) Stock Drops Following Earnings Report

On 13 November, we analysed Nvidia’s (NVDA) price chart and noted:
→ The continuation of a long-term upward channel (highlighted in blue).
→ A consolidation below the psychological $150 level, forming a narrowing triangle along the Quater Line, which divides the lower half of the channel.

On 20 November, Nvidia released its Q3 earnings report, which exceeded analysts’ expectations:
→ Earnings per share (EPS): $0.81 (expected: $0.74).
→ Revenue: $35.08 billion (expected: $33.17 billion).
→ Revenue growth: +94% year-on-year, +17% quarter-on-quarter.
Key Insights (via Reuters):

→ Optimism centres on Nvidia’s new Blackwell processors.
→ Concerns arise over a reduced revenue forecast due to supply chain constraints in chip production.

Despite strong results, Nvidia’s stock price dipped slightly following the report. Pre-market data suggests today’s trading could start around $142.50.

What’s Next?

Technical analysis of Nvidia’s chart indicates potential for further downside movement, with resistance levels formed by:
→ The psychological $150 mark.
→ A Resistance line running parallel above the correction channel (July–October) at a height equal to its range.

If bearish sentiment gains momentum in today’s main session, it could:
→ Confirm a bearish breakout from the consolidation triangle.
→ Threaten a breach of the lower boundary of the long-term growth channel.

In a worst-case scenario, NVDA could shift into a bearish trend within a descending channel (marked in red).
Analyst Outlook:

According to TipRanks:
→ 39 of 42 analysts recommend buying NVDA stock.
→ The average 12-month price target is $165.

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