After the closure of the U. S. market. In the U. S. last Wednesday, NVIDIA reported record sales in the first quarter (Q1) amid record revenue in knowledge media and gaming.
First quarter 2022 sales at the largest U. S. chipmaker. U. S. prices rose 46% to $8290 million, up 8% from the previous quarter. a $1350 million drop in its phased-out acquisition of Arm), NVIDIA expected to enjoy a $500 million drop in sales following its withdrawal from Russia, and due to its more flexible forecasts, its percentage value briefly fell to a one-year low of $152. 40 last week.
The company expects its earnings to fall to $8 billion for the current quarter, which is below analysts’ expectations. Other tech companies, such as Applied Materials Inc and Cisco Systems, have also lowered their profit forecasts due to two-month Covid lockdowns in China, many of which, however, are expected to be lifted this week.
The release of the Federal Open Market Committee (FOMC) minutes in early May, which showed that the Federal Reserve was contemplating assessing its financial policy at its July meeting, gave market participants hope that a Fed financial policy less competitive than the first idea could only be followed. boosting equity purchases in an uncertain environment after several weeks of declines.
NVIDIA’s percentage value has benefited from this buying frenzy with its inventory up nearly 20% in just two days after falling nearly 50% from its peak in late March, and investors are focusing on the strong chipmaker sales growth that has occurred. achieved, “in the context of a complicated macroeconomic environment,” said the company’s founder and CEO, Jensen Huang. “The effectiveness of deep learning in automating intelligence is driving corporations across industries to adopt NVIDIA for AI computing. “The knowledge medium has our largest platform, even though gaming has reached a record quarter. “
Huang said NVIDIA is gearing up for “the biggest wave of new products in [its] history with new GPUs, CPUs, DPUs and robotic processors coming in this part of the year. “advance AI, graphics, omniverse, autonomous cars and robotics, as well as the many industries impacted through those technologies. “
Since last week’s low at $152. 40 was not accompanied by a decreasing 9-day Relative Strength Index (RSI) reading, and instead, an upper low from its early May low reached at the oscillator, a positive divergence in NVIDIA Daily Financial Bet Chart (DFB) can be noted. This setup may have warned investors of a very likely uptrend reversal.
The minimum formation has now been shown via Friday’s daily and weekly chart above the mid-May high at $183. 62, with the resistance zone of $203. 85 to $209. 93 in sight. It comprises the lowest from January to March, as well as the highest since early May and is expected to stabilize, at least in the short term. The previous support, once overcome, almost acts as a resistance when reviewed from below.
This resistance zone is imperative to the medium-term trend, as a failure around it would mean that the existing advance has only been a corrective movement against the trend with the downtrend, which began in November, and is expected to continue for the next few months, pointing to the two hundred weeks. Simple Moving Average (SMA) at $118. 31.
However, if a weekly chart were to close above the mid-March low of $209. 93, two relative highs would have been surpassed, when a candlestick hits a high above the candle to its left and right, on May 4 and 17. a longer-term bullish reversal is emerging.
Such a medium-term bullish reversal formation would be validated if an upper low above the existing May low at $152. 40 were reached in the coming days and weeks, followed by a 200-day advance towards the 200-day SMA at $242. 25.
The fact that last week’s low was reached right in the zone of $153. 19 to $147. 07, consisting of the highs of August, November 2020 and February 2021, and that a weekly trend of bullish swallowing can be established on the weekly candlestick chart, bodes well for the bulls.
Such a trend is created when the frame (the distance between the opening and the end) of a candlestick “gobbles up” the previous frame, in this case on the weekly chart. It’s a trend reversal when buyers outperform sellers.
In addition to the above, it is conceivable that a decreasing correction of Elliott Wave A, B, C to the problem just ended at last week’s low. If this were the case, an imagined rise above the November high at $345. 92 would deserve to follow.
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