NVIDIA, founded in 1993, is a technology company renowned for pioneering graphics processing units (GPUs) for gaming and professional markets. Their advancements significantly impacted the fields of AI, deep learning, and autonomous vehicles. With their CUDA platform, NVIDIA has transformed GPUs into powerful computational tools, pushing the boundaries of modern technology. NVIDIA (NVDA.US) reported record revenue of $13.51 billion for Q2, up 88% from Q1 and 101% from a year ago. GAAP earnings per diluted share for the quarter were $2.48, up 854% from a year ago and 202% from the previous quarter. Non-GAAP earnings per diluted share were $2.70, up 429% from a year ago and 148% from the previous quarter.
NVDA.US 1W Log Chart Analysis, September 8, 2023
Will the price come back to the lower limit of the growth channel?
Thanks to such fantastic results, the company is in an upward channel. It lasts from October 2022 and is marked in white on the logarithmic chart. Currently, the trend is losing momentum, which increases the chances of the price reaching the lower limit of the channel.
A bearish divergence on the RSI (indicated by diagonal, pink lines) is visible among the warning signs. The RSI oscillator’s peak did not confirm the new price peak from the end of August, which usually heralds declines. Another signal is a crossover on the MACD (vertical, pink line), the so-called death cross. After its revelation, the risk of declines increases significantly.
So far, EMA9 has been a strong support for the price. Therefore, closing the weekly candle below it may favor further declines. The distance to the lower limit of the channel is, in this case, more than 17%.
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