ChartPros Market Insights

ADP (ADP), a leading global technology company providing human capital management solutions, announced their 4Q earnings earlier this week. And while the stock has been a steady climber since dipping down to the $201 area back in April, price seemingly has taken a breather the past two days since surging above a major support/resistance level at $248.96.

In what could be a classic "break and retest" of a major level, price may have a big decision to make if it were to make it up to the $260 area in the face of support/resistance, trend, and Fibonacci.  All could pose a formidable detour for price or all could simply be ignored by price.

So what's next?

Honeywell (HON) beat earnings estimates but the stock Is falling in after hours trading?

How can that be?

From a price action technical analysis perspective price and do whatever it wants, whenever it wants, for any reason.  This is true for all equity, futures, commodities, Forex, Crypto, etc. charts across all time frames.

Chevron (CVX) surprised Wall St. Sunday, releasing better-than-expected second-quarter figures early, along with announcing changes to its leadership structure.

Essentially, a lot of fundamentals that had very little impact on its stock price from a price action technical analysis perspective.

Or did it?

General Motors (GM) reported strong revenue and earnings before the market open today.  For the quarter, GM reported top-line revenue of $44.7 billion, beating street estimates of $42.82 billion. GM's Q2 revenue rose 25% jump from a year ago and 11.8% sequentially. GM's adjusted earnings per share (EPS) came in at $1.91, versus the $1.65 the street was expecting.

One might think that its stock price sky rocketed on the open today, but actually it's trading down nearly 3%...

How can that be?  Find out in our Chart of the Day...

Alphabet Inc. (Google ticker GOOGL) reports earnings July 25th after market close.  The charts below are for its Class A shares which since October 2022 have been making a series of higher highs and higher lows until recently meeting some resistance in the $125 - $130 area and consolidating before deciding on a direction for its next move.

By using the "at the money" straddle options pricing, the market is implying about a $7.40 move in either direction between now and the end of this week (as notated on chart at the time of this writing.)

So what's next?

Invesco QQQ is an exchange-traded fund (ETF) that tracks the Nasdaq-100 Index.

QQQ delivers exposure to companies that are at the forefront of transformative, long-term themes such as Augmented Reality, Cloud Computing, Big Data, Mobile Payments, Streaming Services, Electric Vehicles, and more.

See our levels of interest on this very bullish chart that may be cooling off and taking a breather...

As the saying goes in baseball: "Swinnnggggggg and a miss!"

That's the type of sentiment around Goldman Sachs (GS) after they reported earnings on July 19th.

Profits plunged 58% during the second quarter as the Wall Street giant struggled with its core businesses while taking nearly $1 billion in charges on its real estate holdings.  It was the firm's lowest quarterly profit since early 2020.

See what's ahead for its chart.

Carvana (CVNA) stock spiked as much as 27% in pre-market trading on Wednesday after the online care retailer announced a deal to restructure its debt and adjusted profits that beat analyst expectations before the opening bell.

What seems to be peculiar about this is the company wasn't scheduled to report earnings until August. But, they made an announcement just yesterday that earnings would be released today which sent the stock down about 10% on the day.

Note to self - anytime a company changes its earnings date there's probably some big news driving it...

Can you hear us now...

Verizon (VZ) shares have tanked since a Wall Street Journal report revealed the telecom giant's historical use of lead-covered cables is contaminating many parts of the country. The threat of potential legal action and uncertainty about how the lead issues will be resolved have prompted multiple Wall Street firms to downgrade the stock.  AT&T (T) was also named in the WSJ report and their stock is now at a 30 year low.

So is it time to rush in and buy either of these? Hmmm.... Not so fast.

Wells Fargo (WFC) is one of the largest banks in the US.  They reported earnings last week that surpassed Wall Street's estimates that initially popped the stock price up and over $45 per share.  

From a price action technical analysis perspective the news moved price into some potential overhead resistance in the form of support/resistance and Fibonacci structure that initiated some selling pressure.

But the question remains is that the bears stepping in or just the bulls taking some profits off the table because since last quarter's earnings the price has moved up from $35.

The euro (EUR) is the world’s second most traded currency, while the Japanese yen (JPY) is the world’s third most traded currency, resulting in an extremely liquid pair.

Price has been consistently making a series of higher highs and higher lows during the past 3 years and recently broke above long time resistance at 150 reaching levels not seen in over 13 years.

From a price action technical analysis perspective this chart provided a nice pull back long opportunity this week as seen on the daily chart but the question remains can the upward trend continue and if so for how long?

Communications giant AT&T (ticker T) has been tiptoeing and flirting with really breaking down from a price action technical analysis perspective.

Simply looking at support/resistance and trend as taught in our Introduction to Price Action Trading course one can see that price is once again at a major decision zone or "line in the sand" as it can often be referred to.

As the saying goes, the level will hold until it doesn't... And for the last 20 years this area on the chart has held multiple times.

But if it doesn't, this would probably create "panic mode" for management and investors.