The Trade: Nvidia earnings, gold movements, yen weakness
IG's Hebe Chen explores the latest trading opportunities with Nvidia's earnings report, gold price movements amid geopolitical tensions, and the weakening Japanese yen.
(AI video summary)
This video was created on 20 November for IG audiences by ausbiz.
Nvidia's earnings and trading opportunities
Nvidia is in focus this week as traders watch its earnings report closely. Historically, Nvidia's earnings have led to significant share price movements, such as a 9% jump followed by a 46% rise in subsequent months. This week, Nvidia is expected to report an earnings per share (EPS) of $0.74, a 200% increase from last year.
Traders are also interested in Nvidia's future outlook. Technically, Nvidia's share price has dipped below a key ascending channel, indicating a potential cooling in momentum. Key support levels to watch are $146.78, with further declines possibly testing the 50-day moving average around $120. Strong results could see the share price rebound above the channel, targeting $150.
Gold price movements amid geopolitical tensions
Gold has seen an 8% pullback over the past two weeks, its largest decline since 2023, due to a stronger United States (US) dollar and profit-taking. However, geopolitical tensions in Russia and Ukraine have renewed interest in gold as a safe haven.
The critical level to watch is around $2600. If gold holds above this level, it could signal the end of the pullback and the start of a new rally, potentially pushing prices to $2657.
If tensions ease, gold may remain in a descending channel, with support around the 200-day moving average at $2500.
Japanese yen and potential interventions
The Japanese yen has weakened, with USD/JPY exchange rate nearing levels from April and May, raising concerns about potential intervention by the Bank of Japan (BoJ).
The yen has depreciated by 11% since late September, influenced by the US and Japanese elections. Economic uncertainties and questions about future interest rate hikes are affecting the yen's resilience.
Technically, the yen remains in an ascending channel, with potential to reach the 157 - 158 level, which could prompt intervention. If the exchange rate falls below 153, it may signal a reversal and strengthen the yen.
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