2024-05-23 13:12:01

How to Trade $NVDA After Its Blowout Q1 FY2025 Earnings

NVIDIA Corporation ($NVDA), a frontrunner in the tech industry, has consistently been a focal point for investors, especially following their remarkable Q1 FY2025 earnings release. For those looking to trade $NVDA or refine their trading strategies post-earnings, understanding the recent stock movements and potential future scenarios will be pivotal. This article explores strategic insights and actionable advice on trading NVIDIA post-earnings, leveraging historical data and recent stock performance.

Understanding NVIDIA’s Recent Stock Trajectory

Before delving into future trading strategies, it is crucial to analyze NVIDIA’s stock performance surrounding its Q1 FY2025 earnings announcement. The company’s shares saw significant movement, briefly touching $1023 and finding support around $974 before rallying again.

Key Price Movements

• Initial Surge: Post-earnings, NVIDIA experienced a swift increase in stock price, crossing the $974 mark and peaking at $998.
• Subsequent Retracement: After hitting $998, the stock pulled back to $974, offering a second opportunity for entry before it ascended again.
• Current Status: As of the last recorded session, $NVDA was trading around $1013, showcasing robust support and bullish sentiment in the market.

This recent performance could suggest strong market confidence in NVIDIA’s operational trajectory and growth potential. However, traders should remain cautious, as stocks with rapid gains post-earnings can sometimes face volatility as the market digests the new data.

Trading Strategies Post-Earnings

Post-earnings periods can be volatile yet rewarding for traders equipped with the right strategies. Here are several approaches to consider when trading $NVDA following its impressive Q1 FY2025 results:

Short-term Trading Strategies

• Day Trading: Given the initial surge and retracement noted, day traders can look for signals of similar movements in day-to-day trading post-earnings. Entry points around previous support levels like $974, with tight stop-loss orders, can limit risks associated with sudden downturns.
• Options Plays: Traders might also consider directional options strategies such as call spreads around key resistance levels like $1023, balancing risk and potential reward.

Long-term Trading Considerations

• Swing Trading: For those looking at a slightly longer horizon, identifying and leveraging the formation of bullish patterns such as the "bull flag" post-correction can be beneficial. Historically, such patterns have preceded significant upward movements, like the rally to $974 and beyond.
• Position Trading: Incorporating earnings trends and larger market cycles into NVIDIA’s stock analysis can help in setting up strategic long positions. Watching for stability above a critical moving average like the 8-day EMA might offer fruitful long-term entries.

Potential Risks and Rewards

Risk Management

• Always set clear cut-loss points to manage potential losses.
• Monitor stock behavior around key psychological price markers, such as round numbers and previous highs.
• Keep an eye on broader market sentiment and tech sector performance, as external factors can significantly impact post-earnings stock movements.

Reward Maximization

• Stay updated with NVIDIA’s sector-specific developments, such as advancements in AI or gaming GPUs, which could propel the stock further.
• Consider scaling into positions to reduce exposure and manage potential downside risks effectively.
• Leverage technical indicators and historical performance patterns to refine entry and exit points.

Conclusion

Trading NVIDIA post-Q1 FY2025 involves navigating through potential volatility with a sound understanding of both historical trends and recent market reactions. Both short-term traders and long-term investors can find opportunities, provided they employ diligent risk management and continual market analysis. As NVIDIA remains at the forefront of technological innovation, keeping a keen eye on its stock performance will benefit keen traders and stock market analysts alike.

Stay tuned to financial news and updates, and ensure you review and adjust your trading strategies to align with ongoing market conditions and developments in NVIDIA’s business sphere. Happy trading!

Watch this video below for the full details:

2024-05-23 13:12:01
Scott Redler analyzes #nvidiastock

Video transcript:
nidia’s been the focus for a year or two there’s been so much to do there Nvidia has been my favorite stock to trade front and center daily actively options Nvidia is right around the 103 it did hit 1023 last night in order to get to a th000 there were two or three different trades there you could have done the first trade when it went through 974 it went to 998 you know and then came back in gave you the 974 again and then on the building above it and uh all in all here we are at a 1013 okay I have a th by, 50 call spread not quite sure how it’s going to go that’s a problem with earning sometimes the stock could be up 60 points I could be trying to be in an option play and then PS peanuts but if you were wrong you lost it all sometimes it happens that way and we’ll see what happens say question now is how much of today’s Gap holds put a low in in the first 5 minutes in Trend all day and bu verse that and then be in a swing trade for multiple weeks maybe remember this was the last quarter it was a little different because it came in for 3 Days gapped above 746 we were long verse 746 hit 823 which was a nice move came in created a nice bull flag above the 8 day and gave you that move to 974 which was over here the question is how much of today hold