As the Nvidia (NASDAQ: NVDA) stock price faces bearish sentiments, investors are looking forward to potential bullish catalysts such as the upcoming earnings results.
In this line, stock market analyst Peter DiCarlo predicted in an X post on July 21 that Nvidia is expected to undergo significant price fluctuations leading up to its Q2 earnings report.
In his analysis, the expert referenced last month’s prediction, where he noted that NVDA’s top was in, emphasizing his analysis’s foresight regarding recent price movements. He observed that the price action since then has unfolded as anticipated with bearish sentiments, aligning with his projections.
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Despite recent fluctuations, DiCarlo’s analysis indicated an overall trend suggesting that bulls maintain control over Nvidia’s stock. The upward trajectory observed since late 2023 remains largely intact.
The analyst utilized the BX tender, which reveals a pattern of lower highs and lower lows over the past few weeks. This trend suggests weakening momentum, raising concerns among investors about a potential pullback. A descending trendline formed from the recent peaks supports this.
DiCarlo’s analysis points towards a possible pullback in Nvidia’s stock price, particularly as the company approaches its Q2 earnings report. He is still expecting a worst-case pullback to $110 by earnings.
“Overall trend, bulls are still in control.<…> I am still expecting a worst case pull back to $110 by earnings,” the analyst said.
Buying opportunity
Considering that Nvidia has rallied significantly in 2024, despite the short-term price fluctuations, the expected pullback to $110 represents a potential buying opportunity for those looking to enter or add to their positions at a lower price point.
Indeed, Nvidia’s bearishness in the short term was mainly sparked by emerging geopolitical concerns stemming from President Joe Biden and Republican presidential nominee Donald Trump.
Notably, Nvidia has soared more than 500% over the past three years, prompting investors to wonder if it would be ripe for a slowdown in 2024. Indeed, some analysts maintain that following the recent gains, the stock is primed for a crash in the second half of 2024, a factor likely to drag down the general stock market.
However, interest in artificial intelligence (AI) chipmaker leaders has seen the stock surge by nearly 150% in the first half, with some analysts maintaining that there remains room for growth.
Ahead of the earnings results, banking giant Goldman Sachs (NYSE: GS) has noted that the company will likely surprise any AI critics. According to the bank, Nvidia will likely highlight the profits its end users are generating from the growing use of its AI-enabled GPU chips, a potential bullish catalyst.
NVDA price analysis
By the last close of markets, Nvidia was trading at $118 with 24-hour losses of over 2%. On the weekly chart, the stock is down almost 10%.
Meanwhile, if the earnings call beats market expectations, the results should be sufficient to help the stock reclaim the $120 resistance zone.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
