ChartPros Market Insights

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.

United Parcel Service (UPS) reported earnings before the opening bell today lowering its full-year revenue and operating margin projections primarily to reflect the loss of volume and the higher costs associated with the tentative five-year contract reached with the Teamsters union July 25.

The stock was trading down about 5% in pre-market trading.

So what's next?

We don't predict tops or bottoms nor do we try to trade them.

But now that the Apple (AAPL) chart has "showed its hand" so to speak as to where its all time high actually is (for now) we can begin to take a look for potential tradable levels of interest because there is "two-sided" price action from a technical analysis perspective.

With that in mind we've identified some levels, zones, and areas on the monthly and weekly chart.

Occidental Petroleum (OXY) reported mixed second-quarter financials Wednesday, slightly missing on profit expectations.  But the reason this company is making headlines this week is because it's reported to be Warren Buffett's "favorite energy stock..."

From a price action technical analysis perspective,  so long as there is enough historical data to us a chart is a chart is chart.

Here's our take on the bigger picture.

Bitcoin (BTC) is one of the most requested charts we receive so today we'll take a look into where price could go on this chart.  

First of all, we can see for the past few months that price has been consolidating and clinging to a major level of support/resistance just shy of $30,000 before deciding which direction to move in next.

Is price resting before its next big move?

On Tuesday, industrial equipment manufacturer Caterpillar’s (CAT) stock rose more than 8% after the company’s management said it expects 2023 results "will now be even better than we described during our last earnings call."

This catapulted price into unchartered territory making new all time highs. From a price action technical analysis perspective this can prove to be challenging when charting because there is no historical price structure at these levels.  

Challenging, but not impossible.

I once had a mentor that would often say after getting into a trade or investment "well it can only go to zero..."

And Tupperware (TUP) almost did.

Once trading near $100 back in 2014 the company's stock hit rock bottom at $0.61 just a few short weeks ago. And today the stock opened up above $5.

How can that be?

In response to all the Forex chart requests we've received today's chart of the day USD/JPY is presented in both a higher time frame weekly chart and a lower time frame 4 hour chart.

This allows for a birds eye view to help determine market sentiment and directional assessment for those who considers themselves "traders vs investors".

Levels of interest are presented in both directions.