All eyes on Nvidia as it reports earnings later today. Analysts expect earnings of $4.58 on revenue of $20.37bn

Taking a look at Nvidia ahead of its earnings later in the evening. Currently, its shares are trading at around $682.23 a share. We are starting to see some caution as the January uptrend has now been broken on the daily (white trendline), following a 6% fall yesterday. The share price has now reached the 20-day moving average, which reads $675.28. A fall below this level would then increase the probability of a decline towards the 50MA, which currently reads $578.60. However, this would mean a further drop of 14-15% in share price from current levels. It would be unreliable to point out any resistance levels as during earnings season support & resistance levels can easily be disregarded. However, in theory, the resistance here would now be $709.63 and then the all-time high of $746.08. A 9% move would be required after the earnings to re-test those all-time highs once again. Looking at the technical indicators, the MACD has just turned negative and the RSI has now fallen drastically as it reads 57. Most likely the stock is correcting itself for a move in either direction upon the earnings and guidance outlook. The markets and analysts have high expectations due to the AI hype, so anything less than ‘better-than-expected’ could result in a short-term selloff. Nvidia could be the detriment here for the rest of the tech stocks in the near term.