Can Nvidia Shares Hit an All-Time High on Earnings?

Nvidia continues to cruise higher, hitting new 52-week highs. Will Thursday's earnings report propel the stock to an all-time high?
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The chips are back and in a major way. Nvidia (NVDA) - Get Report pushed higher again on Tuesday, hitting new 52-week highs for the second consecutive day.

Advanced Micro Devices (AMD) - Get Report also has had momentum lately as many stocks in the chip space continue to rebound. However, there’s a big difference between Nvidia and AMD.

AMD has been cruising its way to all-time highs for quite some time now. While Nvidia stock has been trading much better lately - over the past few quarters even - it’s still not back to its prior highs.

Could that all change? The charts are lining up for a push to an all-time high. However, the wild card here is earnings. Nvidia is scheduled to report its quarterly results on Thursday after the markets close.

Trading Nvidia Stock

Weekly chart of Nvidia stock. 

Weekly chart of Nvidia stock. 

When a stock isn’t making new all-time highs, it’s easy to consider other “more bullish” plays out there. But all one has to do is look at the weekly chart to see that bulls have been in control.

In August, Nvidia stock popped over the 10-week moving average, pulled back to it in September and has been surging since. Shares have tacked on more than $100 apiece since that move and haven't actually pulled back to the 10-week moving average since. Each dip is met with buyers at uptrend support (blue line).

After pushing through $232 in December - the 61.8% retracement from the all-time high to the 2018 low - this level turned to support in late-January and early February. $250 was resistance but the stock is making mincemeat of that level now, churning through it and climbing north of $270.

So what now? On a continued move higher, $280 is the next upside target. Above that and the all-time high up near $291 is the next level investors will have on their radar.

If Nvidia stock ends up pulling back - or runs up to $280 and corrects - see that ~$250 holds as support should the stock pull back that far. In that event, the 10-week moving average and uptrend support may be in play as well.

As it relates to earnings, the one-way move may be a large one. In that case, I’d still like to see the supports levels hold up if shares dip. That is, $250, the 10-week moving average and uptrend support. Below puts $232 on the table. 

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