Summer trading conditions still affect markets, but this week is special for two reasons. One is the Jackson Hole Symposium that starts today in the United States.

The Federal Reserve hosts Jackson Hole, one of the main events for financial markets during the summer months. Tomorrow, the Fed’s Chair, Jerome Powell, is scheduled to deliver a speech about the US economic outlook, and thus, the tight ranges in the markets this week have an explanation.

The other event that kept investors glued to their screens was the NVIDIA (NASDAQ:NVDA) Q2 fiscal 2024 earnings report. It was released yesterday, and it blew all expectations.

NVIDIA’s stock price, after all, gained over +230% YTD before the report. Therefore, expectations were high that the company would report good numbers.

And so it did.

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NVIDIA has a historic run

Besides NVIDIA’s stock price appreciation in 2023, the earnings are incredible. It is all based on the AI (i.e., Artificial Intelligence) revolution, and the market truly believes in it.

How else can anyone justify these numbers?

For example, following yesterday’s earnings report, NVIDIA became the 5^th most valuable public company. In the world!

Moreover, its EPS increased by close to 900% YoY.

Furthermore, it is now worth close to nine times more than Intel – a rival.

So why would anyone buy NVIDIA stock following the Q2 fiscal 2024 report? The answer comes from expected revenue.

More precisely, NVIDIA expects $183 million in revenue in Q3 2023. PER DAY!

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NVIDIA stock price finds resistance at the $500 level

Shorting NVIDIA has not been a fun game for short sellers, as they lost about $10 billion this year. Therefore, an investor would prefer to focus on where the market goes and take it from there.

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NVIDIA chart by TradingView

When writing this article, NVIDIA’s stock price was up +1.84% compared to the previous day. However, in the pre-market trading, it hit the $500 level, which looks like acting as resistance. 

At this point, one should suspect a consolidation on the NVIDIA daily timeframe. The stock price is more likely to consolidate in the days/weeks to follow, forming an ascending triangle or any other bullish pattern.

In other words, NVIDIA’s price action is unlikely to turn bearish anytime soon. Therefore, prepare to see the dips being bought aggressively.

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