2/8/2017: Nvidia update before ER

The 2016 hottest stock finally comes to the first quarter earning report. Lots of traders, investors start to chime in different opinions or trading plans for this earning report. I am going to do some analysis and possible price action forecast for post earning report.

• The post-ER price gap up case is not discussed here. However, it is discussed here in details. The gap up price target is around $128~$130 based on option chain data.  
• The potential daily RSI top divergence is happening
• The option chain data showed $10 move each side (up/down)
• Based on so stretched price push up before earning, my gut feeling is the post-earning price will go down, but the uptrend will still hold.
• It will form a cup and handle shape to run higher again. The post-ER price action will form the handle.
• Where the price will hold up if price really comes down after earning report. 
• $118-$10 =$108 
• 2 price levels could be the supports: $110, or $105

http://schrts.co/qzwwOM

In summary, this analysis is for those who are not holding the stock of Nvidia, but ready to scoop up the shares. The post-ER gap case is not recommended to chase (I always play gap fill, then relaunch). If the price action match the analysis here, the buy entry is $105 or $110. Then wait for the formation of the handle of the cup and handle, the price will relaunch higher to target price $140.