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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenu(See the video above for Jay’s complete chart breakdown.) This week we want to game plan how to trade a stock after it reports earnings. Trading a stock before it reports can be a bit of a gamble. However, using the charts we see potential pathways that will enable us to take advantage of a reaction to those results with price being our guide. The stock in question is Corning , the specialty electronic, glass optics and components maker reports on Tuesday. Shares have given investors quite the ride this year. They are up 40% YTD but ~50% off their peak. However, we see a set-up giving traders a good near-term opportunity. Let’s break it down on the charts. We are seeing a rounded topping formation that is at a critical level of support. This $120 area has held on two prior occasions and is being tested again. Based on this level we see three scenarios from which we can profit while minimizing risk. Trade scenario 1: The stock reacts positively to earnings and gaps higher Buy the gap higher if it’s below $145. Set stops $2/$3 below that opening gap depending on your risk tolerance. Upward momentum should continue to $150/$155 and meet resistance there. That coincides with the 50 and 200-day moving averages — the stock should be sold there. If shares gap to that $150 level on the open, then a short play may be in order as that old support should be resistance and the gap could retrace 1/3 to ½ of that initial move. Trade scenario 2: No Major Reaction — support at $120/$125 holds Buy the small dip and look for a recovery rally to the $145 level. Use $118 as your stop as a break lower could see an accelerated move into the gap towards $105. Trade scenario 3: Stock Gaps Lower As seen on the short-term daily chart look for minor support at $100/$105 Buyers should step in at the level from its breakout in early 2026 As seen on the longer-term weekly chart, watch for longer-term support at the $90/$95 range. Any sizable gap lower would send shares into oversold territory and a snapback rally is expected As we head into what could be a very volatile time we have laid out the trading game plan. While the $120 level could dictate the longer-term path and health of the stock, it gives the trader a key area to watch and react to where price may head after its report. Shares have traded lower after each of its last four reports and our technical levels have been able to guide us to profits. We don’t know which way it may break, but we will be ready to react once it does. —Jay Woods with Chase Games Jay Woods is the Chief Market Strategist at Freedom Capital Markets. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.Read More