Nvidia Drop Into Discount Prior To Earnings? NASDAQ:NVDA
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Leading up to earnings announcements, Nvidia has historically shown a tendency to pull back into a discount zone before resuming its bullish momentum post-earnings. This pattern aligns with liquidity-seeking behavior, where price often revisits lower levels, potentially reaching fair value gaps (FVGs) or Fibonacci-identified discounts, before significant events like earnings. This pre-earnings drop creates attractive entry points, allowing traders to position themselves ahead of anticipated positive earnings reactions.
The current price action shows a similar setup, with a consolidation range forming around fair value gaps and a discount area, which may signal another pre-earnings dip. This setup could allow institutional traders and market participants to maximize positioning for potential upside, particularly given Nvidia’s promising fundamentals. These include record-breaking demand for the company’s new Blackwell AI architecture and strong growth prospects tied to the expanding AI chip market.
Should Nvidia continue its pattern of dipping before earnings, traders might have a favorable setup, especially as any positive updates regarding production ramp-ups or demand for Blackwell could drive the stock higher after the report. Let me know if you’d like to explore this setup further or discuss additional technical aspects!