Post-earnings trade setups: Lyft, Peloton, and Boohoo
With Q1 earnings season continuing to progress, Lyft, Peloton, and Boohoo provide us with potential trading opportunities.
This article looks at some of the big movers off the back of recent earnings announcements to try and find stocks that seem to provide a good trading opportunity. Typically, earnings announcements and trading statements will drive a shift or enhancement of market sentiment. While many see earnings as a significant risk when holding a stock, placing trades in the wake of such events allows for greater confidence that all market knowledge has been factored into current prices.
Lyft
Lyft has been hit hard over the course of this week, despite beating market estimates on both the top line and bottom line. The company managed to narrow losses over the course of Q1, yet that did little to appease the sellers. Nonetheless, this appears to provide us with an opportunity given the decline into 76.4% Fibonacci support. The uptrend seen over the course of the past year looks likely to kick back in, with a bullish outlook holding unless we see a break back below the $42.76 swing-low.
Peloton Interactive
Peloton has hit the headlines for all the wrong reasons, with a US recall of their treadmill product overshadowing an incredible 141% rise in sales. That has seen price break below $92.14, which represents the neckline of a head and shoulders formation. With questions over the impact on demand once COVID-19 restrictions are fully withdrawn, it comes as no surprise to see the stock under pressure despite strong earnings. With price on the rise towards the end of the week, it is likely that this recent head and shoulders breakdown will soon herald another bout of weakness. As such, bearish positions are favoured unless price rises through the $106.00 swing-high.
Boohoo
Boohoo shares have largely been in consolidation mode over the course of 2021 thus far, with the stock heading lower from trendline resistance once again over the past month. The decline seen over the past three weeks takes us back towards the bottom of a recent descending channel formation. With that in mind, there is a chance we could see the bulls start to come back into play if trendline support is respected. As such, the reaction to this descending trendline will be critical in determining whether we remain within this channel or continue this recent breakdown.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.