​Post-earnings trade setups: Lyft, Peloton, and Boohoo

​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 With questions over the impact on demand once COVID-19 restrictions are fully withdrawn, it comes as no surprise to see the stock under pressure despite strong earnings.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.