Trading Strategies For Nvidia Stock Before And After Q1 Earnings, A Top Holding In Spear Alpha ETF (SPRX)

NVIDIA Corporation NVDA was falling slightly on Wednesday ahead of the company’s first-quarter earnings print, set to be released after the market closes.

When Nvidia printed a fourth-quarter earnings beat on Feb. 21, the stock shot up 16.4% the following day and subsequently continued in its steep uptrend, which brought the share price to an all-time high of $974 on March 8.

For that quarter, Nvidia reported non-GAAP earnings per share of $5.16 on revenues of $22.10 billion, exceeding a consensus estimate of EPS of $4.64 on revenues of $20.62 billion.

For the first quarter, analysts, on average, estimate Nvidia will report earnings per share of $5.59 on revenues of $24.646 billion. Traders and investors will also be paying attention to how Nvidia guides its earnings for the next quarter and how it plans to continue harnessing opportunities in its AI applications.

From a technical analysis perspective, Nvidia looks bullish heading into the event, trading in an uptrend on the daily chart, just below the all-time high.

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Bullish On Nvidia? Traders and Investors looking to play the possible upside in Nvidia stock but with diversification may choose to take a position in the Spear Alpha ETF SPRX. SPRX is an actively managed fund offering investors the opportunity to achieve more than passive tracking of the broader market. Some of the fund's most popular holdings include Nvidia, weighted at 9.48%, Advanced Micro Devices, Inc AMD weighted at 8.84% and Snowflake, Inc SNOW, weighted at 7.25%.

SPRX invests in companies capitalizing on emerging trends in industrial technology, aiming to uncover undervalued opportunities within various value chains aligned with themes such as enterprise digitalization, automation, AI, environmental focus, photonics, additive manufacturing, and space exploration. The ETF, traded on the Nasdaq exchange, targets long-term capital growth and is up about 42% over the last twelve months.

It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.

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The Nvidia Chart: Nvidia entered an uptrend on April 19, after bouncing up from a low of $756.06. The stock’s most recent higher low was formed on May 17 at $918.06 and the most recent confirmed higher high was printed at the $958.19 mark the day prior.

• Since May 15, Nvidia has been trading mostly sideways within its uptrend on declining volume. The horizontal trading coupled with the decreasing volume indicates the stock is in a consolidation period.
• The sideways trading is likely to break after Nvidia prints its earnings. If the stock receives a positive reaction to the news, Nvidia will continue in its uptrend, likely breaking to a new all-time high.
• If Nvidia suffers a bearish reaction to the earnings print and falls under $918, the uptrend will be negated and a downtrend could be on the horizon. If that happens, Nvidia may find at least temporary support at the 50-day simple moving average.

Nvidia has resistance above at $974 and at the psychologically important $980 mark and support below at $919.13 and at $870.85.

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