Unlock Nvidia Stock Potential: Key Price Levels to Watch Before Earnings Report!

Nvidia (NVDA) shares are under scrutiny as the company prepares to release its earnings report after the market closes on Wednesday, February 28, 2025. Investors are keen to see if Nvidia will continue its trend of exceeding Wall Street expectations amid strong demand for its AI products.

Nvidia has established itself as a leader in the AI silicon market, with analysts forecasting a significant increase in revenue. The company is expected to report a 73% rise in fourth-quarter revenue compared to the previous year, reaching approximately $21.08 billion in net income, up from $12.84 billion. Despite trading flat for the year, Nvidia shares have gained 12% this month, although they fell 4.1% to $134.43 on Friday amid a broader market decline.

Recent technical analysis indicates that Nvidia shares are trading within a descending channel, suggesting potential volatility ahead of the earnings report. A bearish engulfing pattern observed on Friday raises concerns about a possible decline in share prices. Investors are advised to monitor key support levels, including $130, which aligns with a trendline connecting previous peaks and troughs. Should the stock fall below this level, it may drop to $113, where buying opportunities might arise.

Resistance levels to watch include $153, which is near the stock’s all-time high. A breakout above this level could lead to further gains, with a bullish target of $174 calculated using the measured move technique. This target represents a significant upside from the current trading price and could attract profit-taking from investors.

As Nvidia approaches its earnings announcement, the focus remains on its ability to meet or exceed market expectations. With critical support and resistance levels identified, investors will be closely watching the stock’s performance in the coming days.