Chart of the Day: Nvidia Eyes $200 Stock Price as Earnings Loom

So, it all comes down to this: NVIDIA NVDA earnings on Wednesday after the close will tell us how the stock market, economy and the entire world are doing. Well, that is a bit facetious, but their report is going to scrutinized heavily. 

What separates NVDA from the rest of the crowd is the reliance on future innovation of chips and how the company plans to grow with AI's continued evolution. No question, the law of large numbers will eventually catch up to NVIDIA, but it might not be for several quarters.  

The bar is high for the company in reporting its most recently completed quarter. If we check back on the last report in May, we see the stock moved with some vigor and energy from the low 120s to where it is today, nearly 45% higher. That is quite a jump, but of course the rest of the stock market is up strong as well. This will definitely move markets.

The chart shows a stock that has declined over the last week or so on moderate volume, suggesting some big institutions have decided to "trim back" their positions.  Makes sense. Money flow still remains robust and the recent decline has turned down the ADX and MACD for now, the parabolic stop and reverse (SAR) is also bearish.

Going into the print (three days of full trading before) we would prefer the stock pull back a bit before moving higher, much like in May when some abandoned the stock and ended up buying it at higher prices. With strong earnings and guidance, we could see NVIDIA up to $200 by year end.

We like NVIDIA in TheStreet Pro Portfolio and rate it a one, or buy at anytime.

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At the time of publication, TheStreet Pro Portfolio was long NVDA.