Yesterday was one of the busiest days of this earnings season. This week, big names like Facebook (FB) and Amazon (AMZN) are stealing the headlines, causing many other prominent stocks to get lost in the mix. Let's view the charts of some of these stocks -- both the headline makers and their less-ballyhooed counterparts.
First up is Amazon, which climbed modestly after hours after crushing earnings estimates but falling short of revenue forecasts. This stock remains in a roaring uptrend, as evidenced by both its bullish channel (diagonal lines) and its proximity to both its 50-day moving average (blue) and its 200-day moving average (red).
Given the opportunity, traders will look to buy Amazon toward the low end of the channel. A purchase near the 50-day moving average, which closed at $1707, would be ideal. The bottom of the channel is located near $1655. That price represents a decision point: If Amazon breaks below that level, short-term traders should exit positions. Investors with a longer time horizon will want to hold on to the stock, as the longer-term trend would still be intact.
With Amazon stealing the spotlight, it was easy to miss yesterday's earnings report from Starbucks (SBUX) . That stock was up less than 1% after the close, after announcing that it narrowly beat earnings and revenue estimates. Starbucks also announced that it is raising its dividend and expanding its share buyback program from $15 billion to $25 billion over the next two years.
Despite this positive news, Starbucks' chart warns us to be wary, as two dangerous obstacles lie just ahead. The first is the stock's 50-day moving average (blue), which rests at $53.60. Just beyond that is the 38.2% Fibonacci retracement of the stock's plunge from its all-time high (point A) to its year-to-date low (point B). The retracement level is $54.11 (lower dotted line), just 51 cents above the moving average.
Finally, we have Amgen (AMGN) which jumped 1.5% after the close, after handily beating second-quarter earnings estimates.
Amgen is on the verge of breaking out of a bullish pattern known as a cup and handle (semicircles). Using a measuring technique, the pattern projects the stock to the $220 area. Earlier this month, Amgen's 50-day moving average (blue) crossed above its 200-day moving average (red), resulting in a "golden cross" buy signal (shaded yellow).
Amazon: Short-term traders should buy on a dip to the low/mid $1700s.
Starbucks: Needs to break above $54.11 to generate positive momentum.
Amgen: Buy on a breakout from the cup-and-handle pattern.
This column originally appeared July 27 on Real Money Pro, our premium site for active traders and Wall Street professionals. Click here to get great columns like this every trading day.