NVIDIA’s (NVDA) anchored VWAP from the February 3 low around $130.24 has drawn algorithmic buying support. This suggests institutional interest as algo-driven buying emerged when prices retreated.
If prices maintain above $130, momentum may shift towards $138-$142, while a drop below this level could lead to focus on lower support areas. With earnings due on February 26, volatility is expected around this key level.
The Anchored Volume Weighted Average Price (AVWAP) is a technical metric that provides a benchmark price tied to specific events. Institutions utilise it as a dynamic support or resistance level based on market activity.
This data highlights the relevance of the $130.24 anchored VWAP in assessing trader behaviour. Institutions, driven by algorithmic strategies, appear to be defending this level. The market’s response to this threshold indicates that large players may be accumulating positions here. If this holds, short-term movement towards $138-$142 remains a possibility, a range where prior resistance and profit-taking could emerge. However, if this level fails, the downward move could accelerate as selling pressure gathers momentum.
The upcoming earnings report on February 26 introduces a variable that could amplify fluctuations. Ahead of earnings, price action tends to reflect institutional positioning as funds adjust exposure. If prices remain above the anchored VWAP, prevailing sentiment may favour the long side, reinforcing the idea that buyers are comfortable sustaining elevated valuations. Any dip below would shift attention to the next support layers, potentially bringing a more defensive posture from participants.
We recognise that anchored VWAP serves as a guidepost for decision-making. Since institutions often use it as a reference for execution, its role as a dynamic threshold cannot be overlooked. If algorithms continue to react at this level, the market may test it multiple times before committing to a definitive direction.
As the earnings date draws closer, positioning dynamics could intensify. Any pre-earnings accumulation around this AVWAP might hint at broader confidence in the upcoming report. Conversely, a breakdown would suggest a different narrative is taking hold, potentially tied to shifting expectations on growth or margins.
Considering the weeks ahead, traders should remain attentive to how price interacts with this benchmark. Movements beyond short-term ranges will depend on whether buyers remain committed or if the pressure from sellers begins to outweigh existing demand.
