 Welcome traders to another tick mill earning season preview with me Patrick Mummelin before we jump into today's report as always want to adhere to that risk disclaimer most pertinent since today's presentation is the fact that the views and opinions expressed by me are solely mine they're not addictive or representative of those held by tick mill UK or tick mill Europe limited okay let's jump into today's report and we are looking at Nvidia. Nvidia are going to announce earnings after the close of New York trade today we're looking for an earnings per share result of 67 cents on revenue of 5.8 billion I would highlight that there is a whisper number on the street that the EPS could come in as high as 74 cents it's not worthy that the company has a strong track record of reporting upbeat earnings it's beaten the street estimates in the preceding eight quarters of reporting interestingly ahead of the Q3 earnings the stock has actually jumped at 15 percent over the past couple of weeks and video confirmed that it will start offering a new 800 graphics processing chip to its Chinese customers while adhering to the new US regulations move has acted as a tailwind taking the stock higher on the flip side and let's expect the sales from the data census segment to report of decline due to lower chip sales in China last week Piper Sandler forecasted the data center segment Q3 sales will be in line with expectations looking ahead they expect the company to guide to sequential growth in the mid to high single digits for the upcoming fourth quarter comparing Nvidia to its peers Piper Sandler believe that Nvidia has the potential to do better than the market in the long run and better than its peers and they maintain a buy rating on the stock the price of it two hundred dollars Oppenheimer on the other hand have lowered their price target on Nvidia to two hundred and twenty five dollars per share down from a two hundred and fifty dollar target but they do maintain a buy rating on the stock based on enterprise spending weakening gaming inventory woes and US China export restrictions Oppenheimer expect a softer setup for the third and fourth quarters of fiscal year twenty twenty two and they predict that gaming correction to persist into the first half of twenty twenty three and but they believe that management is working with its channel partners to address excess inventory issues let's take a look at some of the statistical trading patterns around the Nvidia earnings release shares moved higher in the immediate aftermath after earnings eight out of the prior twelve quarters and average stock has gained one percent the first day after announcing and based on the previous twelve earnings releases in videos more likely to trade higher one day after earnings for an average gain of one point two percent on average stocks move higher by zero point six percent one week after earnings from a volatility perspective the options market is pricing in about six point five percent move on the earnings release stock is actually averaged a four point five percent move in recent quarters from a flow and sentiment perspective really notable buying seventeen thousand six hundred seventeen contracts of the one hundred and seventy dollar bullish call expiring on Friday and in general the options order flow sentiment has been bullish in terms of the flow in the options market and we have seventy percent of analyst coverage of the stock also bullish so the setup is looking positive the Nvidia share price prior to this recent snapback in terms of that fifteen percent gain has drifted twelve percent I'm using the last twelve quarters of data the average drift between earnings announcement is fourteen point seven percent so let's take a look at the charts and see if we can identify any technical opportunities for a trade here in the near term from a technical perspective like I say the setup looks bullish I'm actually targeting move up to the hundred and ninety dollar level would note here that on the weekly time frame we have weekly trend line resistance coming at one hundred and eighty three dollars so what I want to do is I want to establish a long position through that one one seventy level targeting move up to one eighty three one ninety from there I'd certainly be trailing up the stops and tightly things up because we I think we'll see some resistance develop in that one ninety level but I think in the in terms of any pullbacks in the stock any move back into this one thirty one forty area I think that should provide decent support and I'd certainly be looking to re-engage on the long side so in the near term want to be long through one seventy targeting one eighty one ninety there I'd certainly be tightening up those stops looking to look in profits and then any pullbacks into one thirty one forty have to re-engage again on the long side as always traders plan the trade trade the plan and most importantly manage your risk until next time thanks very much