Saad Ullah
⬤ Nvidia is holding near a critical support level as the stock approaches its upcoming earnings release. NVDA is riding the lower edge of a rising trendline while markets debate whether a 94 percent probability of an earnings beat will be enough to push the stock higher. The chart shows On-Balance Volume positioned near 164.18 billion, with a narrowing structure forming between an ascending red support line and a flat green resistance line.
⬤ The image outlines a tightening wedge pattern, with NVDA consistently forming higher lows throughout the second half of the year. The red trendline illustrates the key support area, while the green line marks a horizontal resistance level that Nvidia hasn't broken above yet. NVDA continues to move within this compressed range, signaling uncertainty heading into what's being described as a pivotal Wednesday. The red support line must hold to maintain OBV strength, which remains an important indicator of underlying buying pressure.
⬤ While a 94 percent likelihood of an earnings beat sounds strong, the reaction may depend on whether Nvidia delivers results that exceed what the market has already priced in. The chart reflects this dynamic as NVDA trades near the upper portion of the wedge but still shows hesitation around resistance. With OBV hovering near elevated levels and price action tightening toward the apex, the stock is approaching a moment where direction may shift sharply based on earnings performance and broader sentiment.
⬤ This setup is significant because Nvidia remains one of the most influential names in the semiconductor and AI sectors. A breakout or breakdown from this formation could shape short-term momentum across related industries, particularly given how closely markets track NVDA's earnings as a sector benchmark. With the stock positioned at the intersection of major trendlines, Wednesday's report may determine the next phase of movement as the market evaluates whether expectations align with Nvidia's actual results.
Saad Ullah
