Advance Auto Parts AAP Technical Analysis

September 27, 2021, 07:00 am ET, BY Quentin W.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This proprietary methodology is designed to optimize trading in Advance Auto Parts (NYSE: AAP) and establish prudent risk controls.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for AAP change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if AAP is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for AAP too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for AAP

• Buy AAP slightly over 215.47 target 227.09 stop loss @ 214.85 Details

The technical summary data tells us to buy AAP near 215.47 with an upside target of 227.09. This data also tells us to set a stop loss @ 214.85 to protect against excessive loss in case the stock begins to move against the trade. 215.47 is the first level of support below 215.66 , and by rule, any test of support is a buy signal. In this case, support 215.47 is being tested, a buy signal would exist.

• Short AAP under 227.09, target 215.47, stop loss @ 227.75 Details

The technical summary data is suggesting a short of AAP as it gets near 227.09 with a downside target of 215.47. We should have a stop loss in place at 227.75though. 227.09 is the first level of resistance above 215.66, and by rule, any test of resistance is a short signal. In this case, if resistance 227.09 is being tested, a short signal would exist.

Swing Trading Plans for AAP

• Buy AAP slightly over 216.40, target 227.09, Stop Loss @ 215.78 Details

If 216.40 begins to break higher, the technical summary data tells us to buy AAP just slightly over 216.40, with an upside target of 227.09. The data also tells us to set a stop loss @ 215.78 in case the stock turns against the trade. 216.40 is the first level of resistance above 215.66, and by rule, any break above resistance is a buy signal. In this case, 216.40, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short AAP near 216.40, target 215.47, Stop Loss @ 217.02. Details

The technical summary data is suggesting a short of AAP if it tests 216.40 with a downside target of 215.47. We should have a stop loss in place at 217.02 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 216.40, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for AAP

• Buy AAP slightly over 216.40, target 219.58, Stop Loss @ 215.9 Details

If 216.40 begins to break higher, the technical summary data tells us to buy AAP just slightly over 216.40, with an upside target of 219.58. The data also tells us to set a stop loss @ 215.9 in case the stock turns against the trade. 216.40 is the first level of resistance above 215.66, and by rule, any break above resistance is a buy signal. In this case, 216.40, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short AAP near 216.40, target 215.47, Stop Loss @ 216.9. Details

The technical summary data is suggesting a short of AAP if it tests 216.40 with a downside target of 215.47. We should have a stop loss in place at 216.9 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 216.40, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

AAP Ratings for September 27:

Term →	Near	Mid	Long
Rating	Weak	Neutral	Strong
P1	0	0	202.95
P2	215.20	210.29	215.47
P3	219.58	216.40	227.09

Support and Resistance Plot Chart for AAP

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