BALTIMORE (Stockpickr) -- It's no secret that earnings season is a major catalyst for moves in some of the biggest stocks on Wall Street. When companies report their quarterly financial performance to the investing public, the ensuing buying frenzy or selloff can send shares up or down by double -- even triple -- digits in just a few minutes. But the action doesn't end at earnings.
Even if your stock has reported its quarterly numbers already, you haven't necessarily missed out on the price movement. That's why we're turning to the technicals in this special earnings-season edition of Must-See Charts to see how some of Wall Street's highest-volume stocks could be headed post earnings.
Technical analysis uses a stock's price movements to determine where shares are headed in the future. Technical charts are used every day by proprietary trading floors, the Street's biggest financial firms and individual investors to get an edge on the market. And according to some sources, skilled technical traders can bank gains as much as 90% of the time.
Here's this week's look at how
on Wall Street are trading technically following this week's earnings numbers.
, yesterday's earnings surprise spurred a less-than-auspicious start to Autumn.
Shares of the nation's No. 3 cellular carrier had dropped nearly 10% by the market's close following the announcement of a 30-cent loss per share. Analysts had expected the company to shed 28 cents. But Thursday's selloff may not be the last of Sprint's red days.
In yesterday's trading, Sprint broke down below two key support levels, opening below the uptrending channel shareholders had been enjoying since the end of August, and trading below the 50-day moving average later in the day. At one point, shares tested the stronger 200-day moving average, but that price floor held up in spite of selling pressure. All of that said, where are shares likely to go in the near term?
With shares between the 50- and 200-day moving averages at present, it's likely that they will gravitate toward one of those lines quickly depending on which side of the market dominates in the next day or two. Based on sellers' conviction of late, it seems likely that we'll return to the $4.20 level. If shares creep below the 200-day, it's time to abandon ship.
>>Who Owns Sprint?:
saw a spike in volatility yesterday, following the company's mixed pre-market earnings announcement.
While the company beat analysts' average expectations, it fell well short of last year's comparable numbers. Ultimately, investors decided that the news was predominantly good and the stock rallied 3.2% during the trading session -- but not before posting a loss earlier in the day. That said, with a major resistance level out of the way, this volatile stock could be on the way to higher prices.
Yesterday's trading marked the highest single-day price swing since mid-summer, not a good sign for buy-and-hold investors who are already squeamish about the market's recent run-up. But the market turned decisive by the end of the day, closing up, and closing out longstanding resistance at $19.25.
With few overhead price barriers in sight and a fresh 52-week high under Comcast's belt, this cable company has strong potential to rally further in the coming days.
>>Who Owns Comcast?:
The real winner of the large-cap rally war was $20 billion semiconductor firm
The company gapped up on great profits, surging 11.6% in Thursday's trading while raking in nearly five times the stock's normal daily trading volume. So what should Broadcom investors expect for November?
Shares of Broadcom have featured some interesting action of late, from the bearish head-and-shoulders pattern that sent shares tumbling back in July to the September bottom that bounced into a multi-month rally. But yesterday's gap up could be the most interesting bit of movement yet.
$38 had been a staunch resistance level for Broadcom, and now that it's been taken out, higher ground could be in store. That said, with share prices so high above that newfound support level right now, I wouldn't be surprised if shares reversed to test that level before moving higher. I'd recommend taking a look at today's market close for a glimpse at which direction this stock will attempt first.
>>Who Owns Broadcom?:
To see this week's trades in action, check out the
-- Written by Jonas Elmerraji in Baltimore.
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At the time of publication, author had no positions in stocks mentioned.
Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.