Nvidia (NVDA) Heads for Second Straight Weekly Loss Ahead of Earnings

Fundamental Overview:
Nvidia (NVDA) shares have come under heavy selling pressure this week, tumbling 8% over two sessions and wiping out nearly $350 billion in market value before dip buyers emerged. The decline puts the stock on track for its second consecutive weekly loss, the first since April, although NVDA still boasts a 26% year-to-date gain.

The weakness has extended across AI-linked names such as Palantir and Meta, as investors reassess lofty valuations in the sector. Sentiment took another hit after OpenAI CEO Sam Altman warned of potential “bubble-like risks” in the artificial intelligence space.

Despite the short-term pressure, analysts remain optimistic. Wall Street expects Nvidia to report earnings per share (EPS) of $1.00, up 47% year-over-year, with revenue forecast at $45.9 billion, representing a 53% annual increase. The upcoming earnings release will be a critical test of sentiment, with strong results likely to reverse recent losses and restore bullish momentum.

Nvidia Technical Analysis (Daily Chart)

• Trend: Nvidia continues to trade within a long-term upward channel.
• Moving Averages: NVDA remains above its 50-day and 100-day SMAs, confirming a broader bullish structure.
• Momentum Indicators:
  • RSI – still in the bullish zone, showing resilience despite the correction.
  • Stochastic Oscillator – neutral, suggesting consolidation before the next directional move.
• Key Levels:
  • Immediate Resistance: $180.00
  • Immediate Support: $160.90

How to Trade NVDA

After a powerful rally, Nvidia entered a consolidation phase and recently broke below short-term support, signaling a corrective pullback. The stock is now approaching a critical support zone. If this level holds, buyers could step in, driving a resumption of the broader uptrend.

Trade Setup (Daily Chart):

• Entry (Limit Buy): $166.26
• Take Profit (TP): $182.95
• Stop Loss (SL): $159.29