So we are now back into the joys and volatility of earnings season. This one will be especially important as analysts expect that all 11 sectors in the S&P 500 will see and increase in earnings and revenue growth. One little disappointment and it won't matter what the chart shows, the stock is going to move where it wants to. This brings up the question, are charts even useful during earnings season?

First and foremost the answer is YES, but maybe not in the traditional way you are used to using them. Let's assume that a stock is trading along nicely and then they report earnings and prices start to move wildly. While this may seem like an exciting (or scary if the stock is dropping) time, what can the charts do to help you?

Even fundamental traders who may enter or exit a stock will use a chart to see general support and resistance, and this is what we want to focus on. When a stock reports earnings which causes a sudden move, the little oscillators you use, the moving averages, all the bells and whistles people add to their charts go right out the window. Support and resistance stay however.

People still like to know where a stock last sold off to or where it stopped moving higher previously. The day traders like to use this for their targets or entry prices and the longer term investors tend to ease up on their buying or selling at these points. It's like a mad rush to enter or exit and then calm near these areas. So take a moment before a stock reports earnings and just highlight the most obvious support and resistance areas. Then when the stock makes it's move you will be ready. As ready as you can be anyways!