Nvidia's stock is at a critical juncture ahead of earnings, chart suggests

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Investors should be watching two key levels for Nvidia as the chipmaker prepares to report earnings, one trader says.

The top-performing information technology stock in the S&P 500 year to date, Nvidia has climbed more than 129% in 2020, its best annual gain since 2016 and its fourth biggest on record.

"That's an enormous deal, $40 billion. They say it's immediately accretive," he said. "I'd like to get more information on that." After trading sideways for the last several months, the stock has now dipped below a trend line that's been in place since March, Maley said."That's not a big concern for me yet because ... it's broken below that by going sideways rather than rolling over in any significant way," he said. "It's interesting because the battle lines are very well defined."

 

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