There were mixed-signals from the markets this week, as the Dow Jones fell and the S&P 500 was flat on Friday as fears of new COVID-19 lockdowns in Europe hit banking, energy and airline stocks.
A video game publisher and China's biggest online retailer were among the bearish calls seen. Last week's bullish calls included a top computer chip company and a big three automaker. Benzinga has examined the prospects for many investor favorite stocks over the past week. If the stock receives a bullish reaction to its earnings print, bullish traders will want to see the stock regain the eight-day and 21-day exponential moving averages to negate the head-and-shoulder pattern and Nvidia’s recent downtrend. If the reaction is bearish, traders will want to see the stock drop down through the ascending neckline of the pattern on higher-than-average volume to indicate the pattern was recognized. Whether or not the head-and-shoulder pattern plays out will likely depend on whether Nvidia receives a bullish or bearish reaction to its earnings print. 
If the pattern becomes recognized, the measured move is about 16%, which indicates Nvidia could fall back toward the $140 level. 8 and the left shoulder over the days that have followed. The head-and-shoulder pattern developed between July 19 and Wednesday, with the right shoulder printing between July 19 and July 26, the head between July 27 and Aug. Recent price action between the $162 and $191 level may have settled the stock into a bearish head-and-shoulder pattern on the daily chart. The Nvidia Chart: After hitting a low near the $140 mark on July 5, Nvidia started to trend higher. 
See Also: Confounding Trade? Cathie Wood Dumps $50M In Nvidia Shares Just 2 Weeks After Major Buy And A Day Ahead Of Earnings
It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.
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