Post-earnings trade setups: Ashtead, Berkeley Group, and Carnival
With Q1 earnings season drawing to a close, Ashtead, Berkeley Group, and Carnival provide us with the interesting 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.
Ashtead
Ashtead Group PLC shares have soared in the wake of the mid-March bottom, with the stock managing to reach a fresh 2020 high on Tuesday. While the stock has been consolidating since that peak, it looks likely that we are priming ourselves for another push higher. With that in mind, a bullish outlook remains in play for this stock until we break from this current trend of higher lows. Thus a break below £22.98 would be required to bring a more bearish outlook.
Berkeley Group
The housebuilders have seen significant volatility of late, with Berkeley Group Holdings PLC seeing significant swings over the past fortnight. However, this week has been characterized by a bullish theme, with the stock finding support on the 76.4% Fibonacci level at £40.14. We have subsequently rallied into Fibonacci resistance at £44.28, with price pausing for thought at this key level. Watch for the reaction to this level, with a break higher pointing towards a likely continuation of the bullish trend in place over recent months. To the downside, we would need to break below the $39.85 level to bring about a more bearish theme.
Carnival
Shares in Cruise company Carnival Corporation & PLC (US) has seen substantial volatility of late, with the Norwegian Cruise cancellations hitting sentiment around the sector. Nevertheless, we are starting to see some support around the 61.8% Fibonacci retracement level at £11.48. A break through the £14.67 level would complete a double bottom formation and signal a likely end to this recent phase of weakness.
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