Intraday and swing scenarios based on price action and volume profile.
Top Stocks to Trade this Earnings Season
2023-04-18 • Updated
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations. Core CPI inflation was 5.6%, also in line with predictions. Furthermore, the Federal Open Market Committee's recent staff projections suggest a "mild recession" in 2023, followed by a subsequent recovery over the next two years. Billionaire investor Warren Buffett predicts further bank failures but reassures depositors that they have nothing to fear. Now, the question on everyone's mind is, what can we expect from major stocks in light of these recent events?
TESLA - Daily Timeframe
On the Daily timeframe, Tesla is clearly trading within a wedge and is currently approaching the trendline resistance. There is also a rally-base-drop supply zone intersecting the trendline resistance, thus, giving more credence to the possibility of a bearish outcome once the price tests into the resistance area. Given the ongoing price war in the EV markets and that Tesla has had to cut prices five times this year, I'm confident we will get some interesting reactions from the resistance area.
MICROSOFT - Weekly Timeframe
According to the charts, Microsoft stock prices have reached an all-year high and are currently trading within the pivot zone on the weekly timeframe. The rally-base-drop supply zone also fits perfectly within this pivot zone. Remember, a trendline resistance is rising right into the pivot zone. These confluences confirm, to a large extent, a bearish correction.
APPLE - Weekly Timeframe
The news of Apple's high-yield savings account launch had everyone talking, but not a surprise to some. Despite the remarkable initiative of launching the 4.15% interest rate savings account, Apple stocks may encounter turbulence on their way up based on observing the price action on the charts. The resistance trendline of the flag pattern is expected to kick off a good amount of reaction, given that the trendline aligns perfectly with the supply zone as highlighted. This may not necessarily impact the overall bullish trend, though.
AMAZON - Daily Timeframe
The rising channel intersecting a major trendline resistance at the 200-Day Moving Average resistance, all within a pivot zone on the Daily timeframe, tells a beautiful story still being written 'on Amazon.' The reaction from the point of intersection of all these three factors is expected to add the final piece of the puzzle, which I am confident will be bearish.
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Corrective Bearish Scenario: Sells below 38680 with TP1: 38560, TP2: 38500, TP3: 38432 Continuation Bullish Scenario: Buys above 38816 with TP: 39000
Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.
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In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...