Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Nvidia: up for a gain?
Information is not investment advice
Nvidia is reporting its Q1 earnings on May 26 Midnight/May 27 00:00 GMT +3
What’s the expectation
EPS forecast: $2.62
Most observers expect a strong report from Nvidia. The company already disclosed a preliminary estimation of April performance which is said to be upbeat. That is due to a particularly strong videogame industry position.
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What’s in the store now
On May 21, Nvidia announced a 4-for-1 stock split. Upon the announcement, the stock price rose some 5%. Currently, it trades under $645 – the all-time high which is likely to get beaten if investors like the earnings data. In this case, the zone above $650 may be the likely target.
However, the upward channel market in the image is very strong: it has been valid for more than half a year by now, and will likely stay so – even if the stock breaks through the upside on a positive earnings report.
What’s the scenario
- Upon a strong report, the stock goes up beating or re-establishing its position around the all-time him of $645.
- Later on, the stock moves down in a correction to possibly meet the 50-MA around $585.
- Eventually, the stock will reverse to the upside continuing the upward channel and possibly aiming at $670 within the horizon of two weeks.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?