Earnings continue this week, with several magnificent seven names reporting. We discuss their technical pictures ahead of results.
Earnings offer a peak behind the curtain- an opportunity to blend together fundamentals with technicals as markets get a look at how a company did over the previous quarter and project out guidance over the upcoming quarter/year. Of course, one bad quarter won’t make a firm unsuitable for investment (and vice versa…) but earnings can bring large price movements in either direction… movements which could impact our technical opinion on the name. Big banks recently started up earnings season, with several big names slipping alongside the broad sector despite strong results. This week ushers in several household names, names that your clients undoubtedly have exposure to within the equity sleeve of your portfolio. Alongside several magnificent seven names, the likes of UnitedHealth UNH, Visa V, Caterpillar CAT, Eli Lily LLY, Exxon XOM, and AbbVie ABBV report. Today’s Pulse will detail a handful of interesting technical pictures, highlighting levels of support and resistance you should keep in mind as firms unveil their results.
Tuesday 10/28: Visa V
Visa remains a 5/5’er as we close out October. Despite this, the near-term picture has showed some signs of weakness, seeing the stock post a string of three consecutive sell signals on its default chart. This presents quite an interesting picture, as the retreat off of all-time highs leaves the technical leader with several layers of resistance between $352 and the top of the trading band at $372. Towards the downside, we will watch the bullish support line in the $330’s as a likely landing spot on less than stellar results.
Wednesday 10/29: Alphabet Inc. (GOOGL, GOOG)
After starting out 2025 with less than stellar performance, our first magnificent-seven member to report has rocketed to new all-time highs. The stock earns a perfect technical rating ahead of its earnings report, having posted a string of buy signals on its default chart. In terms of localized support, we will watch the middle of the trading band at $236 as a landing spot on poor results. We are a touch overbought here as we trade at all-time highs, so an upside target is difficult to identify. Regardless, keep in mind that strong assets can continue to trade in an overbought position, so a strong reaction to earnings could send us well above the top of the trading band at $272.
Wednesday 10/29: META Platforms (META)
Like other large names across the market, META has consolidated at/around all time highs on its chart. Despite this, the stock remains a strong 5/5’er ahead of its report mid-week, most recently returning to a buy signal at $736. This coincided with the name moving back above its 50-day moving average, now sitting without resistance until all-time chart highs around $784-$792. It isn’t overbought here, so those looking to add exposure to the name before earnings could do so here. Keep in mind, there is a range of support (as well as old resistance) around $700, which will be our downside mark in the event of a negative reaction.
Thursday 10/30: Apple (AAPL)
Amazon (AMZN) and Apple AAPL both report on Thursday. Both present quite an interesting technical picture. Similarly to Google, AAPL started off the year on a weak foot but has improved quite notably throughout the back half of the year. The 4/5’er sits on a string of 5 consecutive buy signals, moving notably quicker after breaking back into a positive trend in July. In terms of notable support, we will watch the middle of the trading band at $244. We currently sit at all-time chart highs. The top of the trading band is nearby at $268.
