Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Post-earnings trade setups: Delta Air, Just Eat, and Persimmon

With Q4 earnings season underway, Delta Air, Just Eat, and Persimmon 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.

Delta Airlines

Delta Air enjoyed sharp post-earnings rise on Thursday, with the stock hitting a 10-month high. However, we have seen the stock turn lower in the two days since to close the gap. Set within a eight-month recovery, this looks to be just the latest leg in that trend. With that in mind, this subsequent pullback could provide us with yet another buying opportunity. The one risk for a potential reversal comes from the fact that price has respected the 61.8% Fibonacci resistance level perfectly. Nevertheless, a bullish outlook holds unless we see a break below the $37.17.

Just Eat Takeaway.com

Shares in this food delivery service have slumped over the course of the week, with the firm opting to pump funds into expanding market share rather than earnings. The Daily chart highlights the consolidation seen over the final three quarters of 2020, with the stock held back by the perception that earnings will return to normal post-Covid. To the downside, the $75.18 support level is key here, with a breakdown below that level raising the potential for a wider bearish reversal for the stock. However, it is likely that we will soon see the stock steady itself after these losses. As such, watch out for a potential stabilization or rebound around that $75.18 level. A break below there would raise the risk of a significant selloff.

Persimmon

Shares in this housebuilder have enjoyed a positive end to the week, coming off the back of a period of weakness that took us back into a confluence of trendline and 6.18% Fibonacci support. With a clear uptrend in place, this could be the beginning of another bullish phase for the stock. As such, a bullish outlook is in place here, where a break below £24.33 would be required to bring about a more bearish view.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.