💡 Tuesday Trade Idea – June 17, 2025 🛠️ $AAP: Broken Down or Ready to Run?

Advance Auto Parts is Rebuilding Momentum—Here's How I'm Playing It

Hey traders and investors,

Advance Auto Parts ($AAP) has been one of the more beaten-up names in the consumer sector, but lately it’s showing some serious signs of life. After falling from over $200 in 2022 to under $30 earlier this year, the stock has quietly turned the corner.

Now it’s sitting just under resistance at $50.17, and if it breaks through, this could turn into a high-octane swing. So I ran the chart and plotted all three: investor, swing trader, and options trader to cover every angle.

Let’s pop the hood and take a look 🔧

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🧠 The Backstory

AAP has had a rough ride—earnings misses, management shakeups, and inventory issues all played a part in the breakdown. But lately, there’s been a shift. The stock has formed a rounded base and is starting to trend higher with improving volume and momentum.

It's still not fundamentally strong (EPS is negative), but technicals often turn before the fundamentals catch up. This might just be one of those cases.

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📊 Chart Breakdown

• Price Action: AAP just cleared $45 and is making a run at resistance at $50.17. That level is key—above it, things open up fast.

• Moving Averages: Price is above the 20- and 50-day moving averages for the first time in months. It’s starting to flatten out the 200-day. That’s a trend reversal in motion.

• Momentum: 10/10 Trend Strength score is rare for a stock that was left for dead. Buyers are stepping in.

• MACD: Momentum flipped positive weeks ago and continues to trend up.

• IV Rank: 70—there’s premium to sell here. That gives options traders a lot more flexibility.

• Volume: Nearly half a million shares traded—very liquid.

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🔍 Support & Resistance

• Support: $41.17 (recent base), $35.67 (major support from April)

• Resistance: $50.17 is the line in the sand. A breakout above that could target $58–$65 based on the previous sell-off range.

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💡 How I’d Trade It: 3 Ways to Approach AAP