All eyes on Nvidia as it reports earnings tomorrow

Taking a look at Nvidia ahead of its earnings tomorrow. All eyes are now on the chip giant as the bar has been set high this earnings season, anything less than ‘better-than-expected’ could create some volatility in the markets. Currently, its shares are trading at around $951.45 a share in the pre-market trade. By looking at the daily chart, we can see that on the 26^th of April, a breakout towards the upside occurred. The price then pulled back to re-test the breakout zone before heading higher towards the current level. The key resistance here now for investors is the all-time high of $973.87 (red oval). A break above this level would create a psychological target of $1,000, as at that point there would be no clear resistance points, and the risk to reward is greater than usual. The support here for Nvidia sits along the ascending trendline, currently reading $920.90. A break and close below this trendline may lead to a sell-off towards $918 and then maybe even $880-$890. Based on previous market reactions after the earnings, we could see a move of 8%-10% in either direction. Looking at the technical indicators, we can see that they are both positive once again. The MACD is on the rise and the RSI is positive as it reads 60. However, this does not indicate that the price will continue rising as the earnings report has more influence on the stock than the volume of long & short positions.