Looking for a relationship between earnings and price rallies I have added trend angles and earnings surprises at each announcement. The trend angle is placed from the price low price before the announcement towards the lowest price within the following month. The earnings surprise is printed in small print and the difference with the previous month in large print below. With the difference I try to estimate investors sentiment that may drive the price.
Comparing the angle and difference at each announcement I suspect the angle of 57° with a 25.7% earnings forecast difference with previous to become much lower. It will be touch for Nvidia -2.24% to meet investors expectations and maintain course. Therefore the likelihood for a further price fall is there.
To be able to explain the 20° price rally with a -50.6% forecast difference I compared the event with the
SPX
moving average of 20 days. My explanation is that investors were looking at the index performance and still pleasantly surprised regardless the -50.6% forecast difference.
Comparing the angle and difference at each announcement I suspect the angle of 57° with a 25.7% earnings forecast difference with previous to become much lower. It will be touch for Nvidia -2.24% to meet investors expectations and maintain course. Therefore the likelihood for a further price fall is there.
To be able to explain the 20° price rally with a -50.6% forecast difference I compared the event with the
SPX
moving average of 20 days. My explanation is that investors were looking at the index performance and still pleasantly surprised regardless the -50.6% forecast difference.