Nvidia is set to report its earnings tomorrow, with market participants closely watching for what could be a major catalyst for U.S. equities in the near term. Pre-market trading shows Nvidia shares at $142.10, up 1.4% after closing yesterday’s session with a 1% decline.

Technical Analysis: Key Levels to Monitor

Nvidia’s stock has broken below a minor support trendline established on September 6, hinting at potential profit-taking ahead of earnings. Here’s a breakdown of the key support and resistance levels:

Support Levels

1. $137.13: Yesterday’s low.
2. $132.11: A critical level aligned with the 50-day moving average.

A break below $132.11 could lead to heightened volatility, with prices potentially retracing to the $116–$118 range, which corresponds to a more significant support trendline.

Resistance Levels

1. $144.49: The immediate resistance level to watch.
2. $149.94: A key resistance point, where a breakout could trigger strong bullish momentum, potentially pushing prices towards the $160 psychological barrier.

(Chart from IG)

Mixed Signals from Technical Indicators

Technical indicators are currently showing mixed signals, which is common ahead of major events like this earnings report. Investors are advised to prioritize fundamentals and price action, particularly leading into and immediately after the results.

Market Implications

As Nvidia is a leader in the AI space, its earnings could set the tone for U.S. equity markets, particularly within the tech sector. Watch for key earnings updates that could drive short-term momentum or trigger profit-taking based on Nvidia’s outlook and performance relative to expectations.

Conclusion

With Nvidia’s stock positioned near key technical levels, its upcoming earnings report could have a significant impact on price action. Investors should remain alert to support and resistance zones while keeping an eye on broader market reactions to this pivotal event.