Nvidia Earnings May Not Translate to Stock Price Surge
Nvidia's upcoming earnings report is eagerly anticipated by investors and traders alike. The market is waiting to see how the company performs, but even if the numbers are positive, it doesn't necessarily mean that the stock will push higher. In fact, Nvidia's past earnings reactions have shown that sometimes even strong numbers don't translate into a surge in the stock price.
Looking at Nvidia's wave count, some analysts believe that the reversal from the May highs can be seen as a leading diagonal, while the three-wave rally stopped at the 78.6% retracement. This could potentially set up a wave C sell-off, which would be a significant development for investors.
One key aspect to watch is support levels, with some analysts suggesting that much more important support for the next rebound could be around $150-170. When looking at the daily time frame, the wave structure suggests that a deeper fourth-wave retracement could still be ahead.