 Welcome with us folks tonight. We are trying to find ways to polish our crystal ball The way we do this is with a little bit of traders psychology and Our own psychology in order to determine What a ticker can do and in this particular case after earnings? So I'll take two examples for this and the first one is here on Apple The idea is to see you all see this this big drop on Apple was after earnings But the idea is to see What was the sentiment before going to earnings and what is the sentiment afterwards? So look at this one hour chart. I'll draw a few things here if you look at full week, I mean the week starts here till this Friday and We were coming from basically bottom maybe a little higher bottoms from Tuesday to Wednesday on the previous week and Then we started the ramp up towards earnings that were on Thursday last Thursday, so the idea is this sorry about this the idea is this If earnings were so bad Here they would drop Below what we had as Previous support that we had only a week ago, right these people that decided to buy at the bottom Prior to earnings if they were really unsatisfied they would have dumped everything When they reached that level now this you have to see this folks because this is really important I'm not talking about years ago. I'm talking about only days ago, right? So again, I'm going at it again. These people bought pre earnings a Week and so ago, let's say ten days ahead of earnings saying, hmm This looks like a good bottom triple bottom all a little higher and they're buying pre earnings and We see momentum is going up up to a certain line certain line here that we'll see just in a second but this line is Not breaking for a reason and on the last day just before earnings We broke the line up To a point and after earnings we dropped to a certain other line, which is you know close to here So you're looking at something that was not so good earnings Disappointing call it what you were what you wish however We are not dumping lower than what these guys Were buying so if you bought the triple bottom thinking. Oh This is a nice entry Where will be where will it be? Well, where will be your stop? Your stop will be if you drop below that triple bottom, right? So Even after those earnings We are still ways above That low so it tells you we still have a bit of strength in that ticker now Let's move out of the five of the one hour and move to the one minute. I sorry at five minutes just to show you right we were at a Level we're on the five minute here This is pretty much where we stopped moving to the upside Few days before earnings and then it popped above it then after earnings and dropped for a certain line and then this is the After-hours and pre-market activity on Friday and then we are not dropping below this line See this we're not dropping even at the at the gate Right at the gate it came down to a line and it's a line of support. So basically if People that bought that triple bottom we just showed you wanted out they would have sold already and If people that are we're on the way up that bought the work that are currently Backholders wanted to get out. They would have sold already. So the idea is thinking the psychology behind this play is hmm We're still higher than we were a week ago. Although people are not too satisfied with these earnings So let's see what it does at the gate because sometimes it will be You know, there's a big drop and then we will start Dripping even more you saw this. I believe Twitter did something like that. Basically It was kind of hovering close to the support. This is this is resistance here It could have been close to this line and then, you know, it started drifting Afterwards, so what I'm saying is you wait for the for the bell and you saw that let me get this even bigger Now so you can see it clearly You saw at the gate That it started coming down, you know, there was volume going up because people saw the same thing As long as we're not crossing this I would not touch it touch it, right? So this would happen right at the gate. We're not crossing this high of this was post earnings in the after hours trading session and Then we came down to no lower than this. So we're still on support. So this range Is telling you that and it's probably going to break either to the upside of the downside so Because it's just training in a very tight range. It's kind of telling you it's Appear it's it's it's calling the bulls Come and help us out because the downside pressure is pretty low See volume is dropping He and the ticker is still flat Soon as oh, we get just a little bit of volume and we didn't get that much see just a tiny little bit whoop it starts pumping and it gets to a Certain line To a certain line there. Why is this line there? I mean You'll think Support resistance. You're absolutely right Look at this line up. I'll put the 14991 right, let's go to day chart on this Right This is June of this year We're ramping up to what? this line Again this line Got a bit above it Still acting as support right and then just before this week earnings what happened? We're not crossing the 14991 right Let's move back to the five-minute chart The sorry the one-hour chart see It's the same line. I didn't touch it 149 91 this line here. See guys and What happened intraday? We got some bulls showed up and to where? This is where we we ended the After-hour session so, you know close enough Support resistance. We meant we went all the way up to resistance now This is apple Show you the same thing using Amazon now. This is the Amazon chart Let's talk about not the earnings that happened on Thursday night, but the previous ones You all recall this huge dump after earnings right there this was due to Disappointment on many things but guidance was pretty low as well So expectations for the next earnings pretty low so people Jumped ship. I mean we're talking about a ticker that was close to 3,600 that opened up in a 3,300 so this was a pretty Significant dump right and if you look at support and resistance. Yes I'm still talking about support resistance. Look at this line here, right? We are dropping below and you know if you were to Think that we were at least we could have tried to get back to this line On the way up, but Barely and then we've rejected this line which was the old support So basically we jumped and we dumped under support Which could have been kind of here, right? But no, we're in between very close to that. But you know support Rejected this old resistance and now it rejected it So this was clearly bearish. Why? We are entering a Old support zone, which is you know that this old resistance This is where we came to When it moved to the upside it moved to the old support here Rejected it and then it came down lower Trust me on this one. We're Pretty close to this support now For the bottle This is where it picked up and it started moving to the upside So analyzing after earnings you see that You know we're down on support There's very little move to the upside and then it started being bearish afterwards So this was a bearish earnings with bearish rendering afterwards Now let's get back to What happened on the Last earnings and let's move to the one hour chart to tell to show you what happened Same thing that we just did with apple Look at what happened on the earnings Still not so great, right? When you look at the the end result You're talking about something that was Just before earnings something that something that went to 34 79 And then it dumped to This week here in 32 5 area, which is you know a good $200 Not as significant as the other one that had a $300 drop But still not so great. However You saw that Amazon had a similar Activity prior to earnings. Look at this here. We have on the hour chart buyers from the bottom had a double bottom And then we saw a rise Towards earnings that were only about like 10 or 12 days ago Where we saw a rise from a double bottom pick so You have people here buying this bottom me have other people here buying this bottom And you know more so around this area on monday Which is only a week ago So buying the bottom and then we got earnings Earnings that we knew weren't going to be that great because of bad guidance They aren't the previous earnings that we just saw And again disappointment disappointing earnings and We see a big dump on earnings. However, where do we dump? Same thing look for support and resistance. We are dumping in this area Right This is the wick People that bought the bottom Um two weeks ago Right, this is monday and wednesday two weeks ago And Then there's price action See here This is as high as it goes on this drop high as it goes Gets rejected. However. Oh, it's holding. It's holding this line Right, so it gets really really tight on A situation that only happened a week ago People that bought this level and people that bought this level are still very happy about the turnout of their position so Psychologically behind this play what What is it telling you? We just saw the previous earnings that it was a all-out sell People didn't want to stay in And you had to look at days and days and days before In like weeks before to see previous support. However, in this particular case, we're only looking at a few days back It's not even a week ago. We were this level. Yes, there's a big dump, but not significant because we're still higher than these folks and The idea is if you were buying here, where would you put your stop loss if we dumped under right? Well, it's holding So what is it telling you? People are not that disappointed Not this that disappointed and and the show here And let's move out of here zoom in a little bit and Play with these guys a little see I'm going to blow it up and I'm The idea is to show you here these buyers right level of buyers We're here Okay, let's put this on the five minute so we can all play the the um the open Five minute is showing you what happened in the open Right, we get this big dump aftermarket and This is a price action We get the dump obviously there's a wick after hours where does it go to Level we just showed you before it's resistance and it came down to a level right here So this creates a range a range That I like to play As a guide for the open Telling me all these guys that managed to play after earnings On the after hour Session or on the pre-market session. Well, you know Usually there are people that know what they're doing and I tend to think that if we get above this We get on a bullish shot and if you get under that well, we get on the bearish side So look at what happened at the open This is the open here. We dumped Obviously if you had played this and it's after hours some Some of the stop losses will get triggered if you are not able to play this after hours. So basically there are a few um positions that are triggered selling at the at the gate, but This line here Still holding so basically people that bought the bottom at the pre-market session Still showed up right here. So it's not flushing. No, it's still holding right there Here at the top. Oh No, we do not have anyone wanting to get above that which I believe was 33 35 us you're very close to that now. Let's move even closer to see what happened Let's move even closer here. So same thing here traders psychology. We're not Crossing this line and we're not crossing this line either. So we're between a channel You would expect that You know, we could have gone and through this range here flush under if we get bearish Or move above if we get bullish But it didn't nope instead it coiled just like a spring would coil up inside a very tight range It got sold but right away somebody decided to buy it back to a certain point Right there and this is pretty much where I decided to Say that we had a crystal ball call Saying that this looked to me that we were going to in the right direction and the on the upside direction and for all the reasons that I mentioned before regarding the traders psychology Even if we had not so good earnings all these guys I bought Since monday, they're still in if they wanted to get out They would have sold already, right? We're at the same level. They were We're buying this bottom Completely out of the money. The idea is to get a move to the upside. So as soon as we get Past this line It's not going to test it and flush. No, we're we're into buyers territory And this is what happened, right as soon as we moved towards um The right direction see this volume is cranking up And yes, we moved all the way to the next resistance Which managed to be a pretty good play to the outside But the idea is not for for for us to look at the the play itself But the traders psychology looking back You have a few things we played the apple We talked about the apple and now we're talking about the amazon You look where is the support? Where are we dropping to right after earnings? Are we dropping on support below support? How far is that support and who are the bag holders? Are they bought bag holders from a week ago or bag holders for months ago? All this in this particular case apple and amazon We were above a line where traders were there only for a week since a week They bought a week ago and now they're still above. We're still above their entry price Now this tells you that everyone's happy with the turnout in the end, right? Even if we dumped after earnings everyone's happy with the turnout So things to look for are Make sure to look for how far How long ago did we have? Bag holders to above or below That support in this particular case we were above and both amazon and apple So this wraps it up for this crystal ball trying to polish making a way into a bullish move after a bad earning Session on both amazon and apple but things to look for for you Um Regarding how close the support and resistance in this particular case we use the support lines So I hope this makes it a little more easier for you to analyze the traders psychology behind the play Let me know what you think and have a good one folks. Thanks for watching