### **NVIDIA (NVDA) – 1D Chart Analysis (Earnings Consideration)**
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### **1. Key Observations**
#### **NVDA Closed at $130.28 (-3.09%)**
– **Bearish pullback from resistance at $135 – $138**, rejecting near recent highs.
– Currently testing **$130 as support**, a key short-term level.
– **Earnings are this week**, which could lead to **increased volatility and large price swings**.
#### **Volume & Momentum**
– **Higher volume selling** today, indicating some profit-taking before earnings.
– RSI is cooling off but still within **neutral territory**, leaving room for further downside if earnings disappoint.
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### **2. Key Support & Resistance Levels**
#### **Resistance Levels (Upside Targets)**
– **$135 – $138** → Major resistance. Needs a breakout to confirm bullish continuation.
– **$140.87 – $144.90** → Strong resistance zone if NVDA rallies post-earnings.
#### **Support Levels (Bearish Targets)**
– **$127.69** → Short-term support. A break below could trigger further downside.
– **$124.50 – $121.50** → Strong demand zone.
– **$118.04 – $114.78** → Key level for a deeper correction.
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### **3. Earnings Consideration & Strategy**
#### **Scenario 1: Bullish Earnings Reaction**
– If NVDA **beats expectations** and provides strong guidance:
– **Break above $135 – $138** could target **$140 – $145**.
– **Calls or shares breakout play** on confirmed strength.
#### **Scenario 2: Bearish Earnings Reaction**
– If NVDA **misses or provides weak guidance**:
– **Break below $127.69** could lead to a drop toward **$124, then $118**.
– **Potential hedge play with puts or selling covered calls near $135 resistance**.
#### **Scenario 3: Neutral / Mixed Reaction**
– If earnings are **in line but not a major catalyst**:
– NVDA may **chop between $127 – $135**, leading to range-bound action.
– A **straddle or strangle options strategy** could capture post-earnings volatility.
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### **4. Hedge Strategy for Long-Term Investors**
**Selling Covered Calls on Big Green Days**
– If holding NVDA long-term, consider **selling covered calls** into resistance near **$135 – $140** on any strong green days this week.
– **Expiration:** Post-earnings, to capture elevated IV.
– **Risk Management:** Be prepared to roll the calls if NVDA spikes post-earnings.
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**Conclusion:**
NVDA is at a **critical level ahead of earnings**, currently holding **$130 support** while rejecting **$135 resistance**. **Earnings will be a major catalyst**, with a **bullish reaction targeting $140+, and a bearish reaction potentially bringing $124 – $118 into play**. **For long-term holders, selling covered calls into strength this week could be a smart hedge.**