Nvidia gaps up: Technical analysis shows breakout from resistance zone

Key highlights

• Nvidia stock opened on August 28, 2026 with a gap of 8.7% at $227.98 following quarterly results for the Q2 quarter ended August 2026
• The data center segment generated $89.0 billion in revenue (117% year-over-year growth) and represents over 92% of total revenue of $96.2 billion
• The price is testing technical resistance at $227.76–$228, the upper boundary of a large symmetrical triangle
• Management forecasts Q3 revenue of $108 billion and growth of over 70% in fiscal year 2028 – well above the previously expected 45%
• Slow Stochastic showed overbought conditions as early as August 21, 2026; the 50-day moving average stands at $210.50

Gap-up following earnings: 8.7% price jump to $227.98

Nvidia stock (NVDA) opened on August 28, 2026 with an 8.7% gap at $227.98. The trigger was the release of second quarter earnings (ended August 2026) the evening before. According to FX Leaders, Nvidia significantly beat market expectations with its results and forward guidance.

The company reported total revenue of $96.2 billion – an increase of 106% year-over-year and 18% sequentially. Operating earnings per share (GAAP diluted EPS) were $2.46, with the non-GAAP adjusted EPS at $2.22. GAAP gross margin reached 75%.

The data center segment in particular drove growth: with $89.0 billion in revenue, this division posted 117% year-over-year growth and now accounts for over 92% of total revenue. For the upcoming third quarter, management guided to revenue of $108 billion – another double-digit sequential increase. This guidance assumes zero revenue from China data centers, a conservative approach given ongoing export restrictions.

Resistance zone at $228: Testing the symmetrical triangle upper boundary

Technically, the price is now in a critical zone. According to FX Leaders, the stock is testing the $227.76–$228 level, which marks the upper boundary of a large symmetrical triangle. This chart pattern forms when successive highs and lows converge over an extended period and typically signals an imminent directional decision.

According to SwingTradeBot, the next resistance levels were already at $226.93, $228.71 and $229.92 on August 21, 2026. The jump to $227.98 thus brings the stock directly into this zone. Over a six-month period (February through August 2026), Nvidia found support near $164.98 according to AltIndex, with resistance around $235.47.

The stock reached its previous all-time high in May 2026 and subsequently formed lower highs, as reported by TradingView. This means the price was consolidating before the earnings report. The gap-up breaks through this structure for now and brings the shares back to the upper boundary of the multi-month trading range.

Technical indicators: Overbought Stochastic and moving averages

The technical signals are mixed. SwingTradeBot reported as early as August 21, 2026 that Slow Stochastic indicated overbought conditions. This momentum indicator signals when a value could be temporarily overvalued and a correction may be imminent. The subsequent 8.7% jump exacerbates this situation further.

The 50-day exponential moving average stood at $210.50 according to TipRanks on August 27, 2026, while the stock was trading at $213.05 at that time. With the current price of $227.98, the distance to the moving average has widened to approximately 8% – a typical sign of short-term overheating.

SwingTradeBot cited support levels on August 21, 2026 at $223.94, $222.73 and $220.95. These levels should serve as initial support zones during consolidation following the gap-up.

Fundamental catalyst: Vera Rubin as next growth wave

Behind the price jump lies not only current earnings quality, but also the prospect of more years of strong growth. FX Leaders quotes management: the Vera Rubin infrastructure platform is to initiate the next major growth phase – following Blackwell AI hardware, which is already being successfully rolled out. The company believes Vera Rubin could enable decade-long growth extending beyond fiscal year 2028.

Specifically, Nvidia expects revenue growth of over 70% in fiscal year 2028. This forecast is well above the previously expected 45% average by analysts. Should this assessment prove accurate, the company's growth trajectory would steepen more than previously assumed.

Risk factors: China policy and gap risk

Two uncertainties remain. First, it is unclear whether Nvidia is permitted to sell H200 chips to Chinese customers. The Q3 guidance assumes zero revenue in this segment – should approval come through, this would be a positive surprise factor. Vantage Markets pointed out on August 5, 2026 that China chip policy remains an ongoing variable.

Second, price gaps following earnings carry risks for investors with leveraged positions. Vantage Markets noted that overnight gaps around scheduled earnings announcements are frequent and not the exception. Those trading on margin or with derivatives can be disproportionately affected by such moves.

Market environment: US indices under pressure, Nvidia swims against the tide

While Nvidia surged significantly on August 28, 2026, US indices paint a mixed picture. NASDAQ Composite fell 0.08% to 26,130.2 points, S&P 500 dropped 0.01% to 7,727.63 points (as of August 28, 2026, 12:03 UTC). In Europe, DAX (26,499.5 points, +0.46%) and Euro Stoxx 50 (6,467 points, +0.52%) advanced instead.

Nvidia thus swims against the trend of US technology stocks. This underscores company-specific strength in earnings and guidance – the move is fundamental rather than broad market-driven.

Outlook: Further buying pressure needed for sustained breakout

MEXC Crypto Pulse noted on August 25, 2026 – before earnings – that a break above the technical resistance zone would require additional buying pressure beyond the earnings move itself. In other words: the gap alone is not sufficient to sustainably break through the resistance zone. The key will be whether additional buyers step in over the coming days and the price remains established above $228.

If the breakout succeeds, the path toward the six-month high near $235 would be clear. Should the attempt fail, support levels at $223.94 and the 50-day moving average at $210.50 should come back into focus.