August 20 Chart of the Day - Advanced Auto Parts
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Advance Auto Parts, Inc. (AAP) is a North Carolina based automotive aftermarket parts provider. It serves both professional installer and do it yourself customers and as of December 2023 operated 4,935 stores.
The company reports earnings Thursday before market open so we wanted to review their chart from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $244.55 all time high (ATH) back in 2022 price fell dramatically all the way down below $50 over the next few years.
Since then, price has slowly been making a series of higher highs and higher lows and seemingly is at a decision point.
Weekly Chart
On the weekly chart we can see with much more clarity the dramatic fall from ATHs and the subsequent but weakening attempt at making a series of higher highs and higher lows since bouncing.
Trading around $60.50 earlier today price may be attempting to establish a path to its next higher high.
The market is implying about a $8.10 move in either direction as marked on the weekly chart by this Friday August 23. Share price has risen during the week of earnings 2 of the last 8 quarters.
Could earnings be the catalyst that pushes price to its next higher high or will price continue fading?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
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