ChartPros Market Insights

NVIDIA (NVDA) has the internet ablaze with headlines about its AI technology and its stock price.

Today we'll take a look at its price and how to use Fibonacci and the math / probabilities behind it to create potential upside price targets.  Note, these are not levels to short or buy, but anticipated upside targets as if you were already long for trade management educational purposes.

Macy's (M) beat earnings estimates on Tuesday before the market open, but the department store pointed out that its credit card business is under pressure.

In its Q2 earnings report, the company highlighted a decline in credit card revenues, "which were negatively impacted by an increased rate of delinquencies across all stages of aged balances within the portfolio."

Yet another retail giant took a cautious outlook on consumers.

Yada yada yada so the story goes...

So often I get asked "Tom, where do you think the market is heading?"

I start by saying the better question is "where could the market be heading?"

Because what I think doesn't matter to price action and no one knows with any certainty where the markets are heading. 

I don't make predictions, I don't call tops/bottoms however, I may react to price when it reaches a predetermined level of interest by trading or investing in that particular index, equity, commodity, Forex, etc.

Let's take the S&P 500 for example using it's futures ticker /ES...

By now you may have heard about the tragedies in Maui. I have thought and prayed about those suffering from the devastation and will continue to do so.

Today we'll take a look at Hawaiian Electric's (HE) chart.  The company serves 95 percent of Hawaii's 1.4 million residents on the islands of Oahu, Maui, Hawaii, Lanai and Molokai.

The primary reasons for taking a look at this chart is to provide a harsh reminder to you to "never say never" and that in the markets anything can happen at anytime for any reason...

Electronic Arts (EA) is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile.

That's great, but to us it is just another chart...

Since making new all time highs (ATH) at $151.26 and subsequently dropping below $75 back in 2019 price retested its highs in 2021 before drifting lower.  

OGE Energy Corp. (OGE) is a holding company with investments in energy and energy services providers offering physical delivery and related services for electricity in Oklahoma and western Arkansas. 

The company reported second-quarter 2023 earnings earlier this week of 44 cents per share, which missed the analyst's estimates of 65 cents by 32.3%.

From a price action technical analysis perspective price is getting a "haircut" as they say on Wall St. and toiling inside a "change control zone."

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.

Light Sweet Crude Oil Futures (/CL) impacts anyone who drives a gas powered car as it directly impacts the cost of gasoline.  And we all know that gas prices, along with inflation, have been on the rise.

Since making its spectacular plunge a few short years ago to below $7 per barrel the cost of this precious commodity experienced a meteoric rise to $130 before falling back and settling well below $100.

Currently trading in the low $80s we can use price action technical analysis to see that price may have an upcoming date with $90 or higher again.

Traders that understand how to identify change control zones on a chart can trade them level to level until one side wins out.

This zone is one of the longer change control zones we've seen in recent memory.  But a wedge is appearing on the weekly chart so it will be interesting to see how price moves in the future.

ChartPros has become a New Trader University partner which is led by world renowned trader Steve Burns.

Steve plans to feature and highlight ChartPros expertise with Fibonacci and periodically will provide access to ChartPros free trading tips and price action courses.

American Express (AXP) comes into focus today and was reported as the 5th largest holding in Berkshire Hathaway's top 30 investments at the end of 2022.

Despite making new all time highs (ATH) at $199.55 in February 2022 and subsequently falling to the low $130s price is essentially where it was two years ago... Chopping and trading sideways between $150 - $175 closing yesterday at $165.87.

So what's next?

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