Economic Data to Steer Sentiment as Nvidia Shines

Markets are already digesting key economic releases, with U.S. preliminary GDP due later today, followed by Canada’s GDP and the U.S. Core PCE Price Index on Friday. Over the weekend, China’s Manufacturing PMI will round out the week’s major data, offering further insight into global growth momentum. Meanwhile, Nvidia stays in the spotlight as traders weigh both strong earnings results and a constructive technical picture. 

High Impact Economic Events 

Thursday 15:30 (GMT+3) – USA: Prelim GDP q/q (USD) 

Friday 15:30 (GMT+3) – Canada: GDP m/m (CAD) 

Friday 15:30 (GMT+3) – USA: Core PCE Price Index m/m (USD) 

Sunday 04:30 am (GMT+3) – China: Manufacturing PMI (CNY) 

Chart Analysis 

Since reaching a high of 183.63 on August 13, Nvidia briefly slipped below the 20-period Exponential Moving Average (EMA) but quickly recovered, closing back above it in subsequent sessions. The rebound was reinforced by the appearance of a Dragonfly Doji, signaling renewed buying interest. 

From a technical standpoint, the setup remains constructive. The 20-period EMA trades above the 50-period EMA, with both moving averages pointing upward, underscoring bullish control as price action consolidates above them. Momentum readings confirm this stance: the Momentum Oscillator remains above 100, pointing to strengthening short-term thrust, while the RSI holds comfortably above 50, consistent with an underlying positive bias. 

A decisive break above 183.63 would validate renewed bullish momentum and pave the way for additional upside. 

Key Resistance Levels

Should the buyers keep market control, traders may direct their attention toward the four potential resistance levels below: 

183.63: The initial resistance level is set at 183.63, reflecting the daily high marked on August 13. 

193.00: The second price target is set at 193.00, representing the 161.8% Fibonacci Extension drawn from the high point, 183.63, to the low point, 168.47. 

198.10: The third price objective is observed at 198.10, mirroring the weekly resistance, R3, calculated using the standard Pivot Points methodology. 

208.16: An additional upside target is projected at 208.16, corresponding to the 261.8% Fibonacci Extension drawn from the high point, 183.63, to the low point, 168.47. 

Key Support Levels

Should the sellers take market control, traders may consider the four potential support levels listed below: 

176.24: The initial support level is estimated at 176.24, representing the weekly Pivot Point, PP, estimated using the standard methodology. 

168.47: The second level is seen at 168.47, corresponding to the low point from August 20. 

158.36: The third support level is identified at 158.36, reflecting the daily high marked on June 27. 

148.06: An additional downside target is 148.06, mirroring the high point from May 29. 

Fundamentals

Nvidia once again beat Wall Street’s expectations with its latest earnings, setting a new quarterly sales record. The company reported $46.7 billion in revenue for the second quarter, up 6% from last year, and earned $25.8 billion in profit, 42% higher than a year ago. Most of the money came from its booming data center business, driven by demand for AI chips. 

Despite the strong results, Nvidia’s stock dipped slightly after hours as investors looked for clarity on challenges in China, where the government is discouraging local firms from buying some of its chips. Analysts, however, remain upbeat, saying Nvidia is still the leader in powering AI and could benefit even more if it develops custom chips for China. 

Conclusion 

In summary, markets are heading into a data-heavy finish to the week, with U.S. GDP, Canada’s GDP, and the Core PCE Price Index set to guide sentiment before China’s PMI offers a global growth check. Nvidia remains a focal point—its strong earnings and bullish technical backdrop suggest resilience, though headwinds in China may temper enthusiasm. For now, the balance of fundamentals and technicals continues to favor the upside, with key resistance levels in sight.