Advance Auto Parts, Inc. (AAP) Wants to Break Higher

by Christian Tharp, CMT

Advance Auto Parts, Inc. engages in the supply and distribution of aftermarket automotive products for both professional installers and do-it-yourself customers. It operates through the following segments: Northern Division, Southern Division, Carquest Canada, Independents and Worldpac. Advance Auto Parts offers replacement parts, performance parts, accessories, oil and fluids, engine parts, brakes, batteries, accessories, and tools and garage.

Take a look at the 1-year chart of Advance (NYSE: AAP) below with the added notations…

Chart of AAP provided by TradingView

AAP has formed an important level of resistance at $242.5 (red) over the past couple of months. In addition, the stock has also formed a trendline of support (green). The stock is currently testing the $242.5 resistance again.

The Tale of the Tape: AAP has created a trendline of support and a $242.5 resistance. A long trade could be entered at the trendline, or on a break above $242.5, with a stop placed under the point of entry. However, if trendline support were to break, lower prices could follow instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT 

 

ATTENTION SUBSCRIBERS!

Do not trade options until you watch my urgent message:

How to Use This Simple, Yet Extremely Powerful System 

to Find Substantial Gains With Options…

Good luck!

Christian Tharp, CMT

www.todaysbigstock.com 

Our Experts Found 9 Stocks You Will Hold Forever

With individual stock selection now more critical than ever, this report is designed to bring you some of our top ideas for the year ahead. One of the companies highlighted in this report controls the smartphone market and now has its sights set on owning a bigger technology. It has the potential to be the most valuable stock in the history of investing. You need to find out the name of this company before the rest of the market does. This Report Is Completely Free, Download Your Copy Today

Interested in events that actually move the market?Awesome!

Let us send you a recap of every weeks market movers!

Better yet…Receive ALERTS
of Market Moving Events…
seconds after they surface!

  • Mergers & Acquisitions
  • Clinical Trials
  • Contract Awards
  • Stock Repurchase Programs
  • Earnings Announcement

Get Started