Earnings season is officially here! Alcoa usually kicks off earnings and right now, after hours it’s reporting a small pop. I always love earnings season. As a day trader who is also proficient trading options, earnings create a plethora of opportunities for gains with all of these gaps.
Here was my analysis on AA from just a few days ago.
Therefore, as I write this AA is opening in the ‘green zone’. Specifically an open above $10.33. Notice AA had 4 bullish buying days in a row, represented by nice volume and bullish candles. My assumption will be if AA opens higher from earnings, it likely will trade down and possibly fill the gap in a retesting fashion. This action will likely give buyers a great buying opportunity as AA stock pulls back.
The selling potentially will be coming in from the previous 4 days buyers, seeking to lock in a profit. It’s also good news that AA should be opening and gapping above resistance.
The 100 simple moving average has crossed the 200 simple moving average on the daily. Plus they are acting as a support. In my opinion over the next 2-3 months, I like AA higher and below is my depiction of how I’m planning to play the AA move.
Thank you so much for reading this article! If you’re interested to learn how to play these gaps over earnings, enjoy the free Trader Planet exclusive day trading videos I produced not too long ago.
Until next time, remember, love Life, live life and trade it!
