To The Moon

$NVIDIA(NVDA)$ is scheduled to report its fourth-quarter earnings on February 26, 2025, with analysts expecting an EPS of $0.84, reflecting a 61.54% year-over-year increase.

The company's new Blackwell chip series, integral to AI advancements, has faced production challenges, including overheating issues and high demand leading to sell-outs through 2025.

Technical Analysis of Nvidia (NVDA) Ahead of Earnings

1. Bearish Moving Averages Cross

• The chart highlights a bearish crossover between the 21-day SMA and 55-day SMA, signaling potential downside momentum.

• This crossover often suggests a shift in trend direction, as shorter-term moving averages reflect weakening bullish momentum.

2. Formation of Lower Highs & Lower Lows

• Following the bearish cross, NVDA made a series of lower highs and lower lows, confirming a downtrend structure.

• This pattern indicates sellers are in control, with price failing to sustain higher levels.

3. Respecting the Downsloping Channel

• NVDA's price action is contained within a well-defined downsloping channel, reinforcing the bearish bias.

• As long as price remains within this channel, any rallies could be met with selling pressure at resistance levels.

• Breaking below the lower boundary could accelerate selling, while a breakout above would suggest trend reversal.

4. Slight Increase in Volume on Friday’s Drop

• A notable rise in volume during last Friday’s decline indicates increased selling interest ahead of earnings.

• This could mean investors are positioning cautiously or taking profits before the announcement.

5. Support and resistance is now capped by the channel

Support at $110-$115, resistance at $145-$150 – price is respecting this range.

Why Use Daily Leverage Certificates (DLCs) to Trade NVDA Earnings

• Leverage Without Margin: DLCs provide leveraged exposure to NVDA without requiring margin accounts.

• Controlled Risk: Losses are limited to the initial investment, making it a strategic tool for volatile events like earnings.

• Flexibility: Both long and short DLCs are available, allowing traders to position for either direction.

Trading NVDA Earnings With DLCs

• If Expecting an Upside Move: Use long DLCs to capitalize on a breakout above resistance (upper channel boundary). $NVDA 3xLongSG261006(NVIW.SI)$

• If Expecting Downside: Use short DLCs to benefit from further downside momentum within the downtrend channel. $NVDA 3xShortSG261006(NVDW.SI)$

Hit the follow button to stay updated! I post valuable trading and investing insights every week—don’t miss out on being the first to know!

For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.