Post-earnings trade setups: Boeing, Ford, and Next
With Q2 earnings season in full flow, Boeing, Ford, and Next 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.
Boeing
Boeing Co (All Sessions) shares have understandably suffered over the course of the week, with earnings being compounded by weakness in value stocks. The decline through $166 support highlights a bearish breakout following almost two-month period of consolidation. As such, further downside looks likely from here, with a breakthrough the $182.92 resistance level required to negate the current bearish view.
Ford Motor Company
Ford Motor Co (All Sessions) shares have rallied into a confluence of Fibonacci (61.8%) and SMA (200-day) resistance, with signs of a potential bearish turn coming into play. With the stochastic breaking back below the 80 threshold, there is a good chance we are on the cusp of another turn lower from here. With that in mind, further downside looks likely from here where a bearish signal comes from a break below the $6.67 support level. Alongside that, watch for a break through the 80 threshold in the stochastic to highlight a breakdown in momentum.
Next
Shares in Next PLC had enjoyed a positive reaction to earnings on Wednesday, with price rising back into the $57.05 peak from June. While price did initially break into a fresh four-month high, it seems the 200-day SMA was a step too far. With price turning lower since, there is a good chance we will see further short-term downside from here. The break back out of the overbought territory in the stochastic provides another bearish signal, with a rise through $58 threshold required to reverse this bearish outlook.
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