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There are a large number of S&P 500 stocks reporting earnings on Tuesday, February 11 — but today’s rundown is a little different than usual.
Instead of working through a longer list of names that simply have earnings on the calendar, I narrowed my focus to 4 stocks where the charts already suggest potential trade setups. I’m walking through each one using price, time, and momentum, with a specific emphasis on something I think traders often skip:
What’s my next move if the opposite of what I expect actually happens?
Below is exactly what I’m seeing on each chart.
🔍 Highlights
1️⃣ HUM — Humana
HUM has been under pressure for quite a while, but recent price behavior suggests selling pressure may be starting to ease. One possibility is that this stock is working toward a tradable low, potentially after a retest of the early February lows. If price revisits that area while momentum holds up better, that would create a disconnect that often sets the stage for a move higher.
In that scenario, I’d be watching for a rebound toward the 50% retracement of the most recent decline, assuming the prior low holds. If price breaks lower instead, that retracement would need to be recalculated.
This is where planning for the alternate scenario matters. If shares trade higher instead — specifically above the January 29 high — the recent basing action would shift into an upside break. From there, upside may be more limited, with the 240.00 area acting as a reasonable reference.
This is a chart I’m watching closely around earnings, with no requirement to trade it before the report.
2️⃣ NI — NiSource
NI continues to respect a long-term upward channel, defined by multiple confirmed swing lows stretching back to last spring. The recent pullback followed a test of the October high, and so far, the broader trend remains intact.
As long as price holds above the January 2 prior high, I’m comfortable looking for pullbacks in the direction of that larger move. Using a projected parallel of the lower channel boundary, my upside reference currently comes in near 47.00. The longer price takes to get there, the more that projected target can expand.
If the opposite happens and price fails to hold above that prior high, that would shift my focus away from buying pullbacks and force a reassessment of the channel altogether.
3️⃣ ALB — Albemarle
ALB is a great example of why I rely on RSI Power Zones. On the daily timeframe, price has repeatedly turned higher after pulling back into the Bull Support Power Zone, and the current pullback has once again brought price back into that same area.
From here, what I want to see is follow-through above the February 4 high. If that happens, I’d expect a revisit of the January highs, with potential extension toward the 220.00 area.
On the flip side, if shares don’t trade higher from current levels, the next downside reference becomes the 50% retracement of the most recent advance, which sits near 142.00 Knowing that level ahead of time keeps the decision-making process grounded if momentum doesn’t cooperate.
4️⃣ KHC — Kraft Heinz
On a weekly chart, KHC tells a longer-term story. A few weeks ago, price made a low at 21.99, just one cent below the midpoint of the March 2020 pandemic week. That’s a meaningful historical reference, and the fact that price stabilized there matters to me.
Since then, shares have started to recover. While I’d want to see price clear 26.00 to get more excited, a move above that level opens the door to a push toward 29.00, with 33.00 as the next higher reference on the daily chart.
Because this is a lower-priced stock, the expected moves may look small in dollar terms, but they’re meaningful when you look at them as a percentage of the share price.
Final Takeaway
Those are my four picks based on stocks reporting earnings tomorrow, February 11. When you look at these setups relative to the share price, the potential moves become easier to frame.
If you found value in this new twist — where instead of just listing stocks with earnings, I focused on charts that may already have trade setups — or if this was a helpful reminder around technical analysis, go ahead and hit the Like button over on YouTube!
~ Hima
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