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August 14 Chart of the Day - Embraer

Embraer SA (ERJ) the 3rd largest commercial jets manufacturer topped Q2 earnings estimate and reaffirmed its annual outlook however, its stock price is trading down about 5% today.

How can that be?  Is technical analysis more important than "the fundamentals?"

Well, at least traders seem to think so... for now.

Since setting a definitive low at $3.96 in October 2021 price has been making a series of higher highs and higher lows peaking at $19.40 last October and in the mean time carving out a newly formed "change control zone" between $12 -$13 area.

Price seemingly is heading back down towards that area again on the weekly chart so it will be interesting to see how price reacts if it reaches there.

One possibility could be a "touch and go."

So what's next?

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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