Post-earnings trade setups: French Connection, Goldman Sachs and Bank of America

​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.

French Connection

French Connection shares have been on the slide over the course of the past three months, with the stock peaking at the February high of 32p. However, it is worthwhile noting the ongoing uptrend, which would need a break below 9.6p to end. Instead, it is likely we will see the stock push higher before long, with a rise through the 22.9p level bringing a bullish reversal signal for this stock. Until then, further downside could continue to take shape.

Goldman Sachs

Goldman Sachs provided one of many impressive US banking earnings this week, yet price has taken a little bit of time to warm up. However, the rise through $335.59 brings about a fresh bullish signal, with the fundamentals clearly behind the notion that we could see another move higher here. With that in mind, bullish positions are favoured unless we see price fall back below the $323.99 swing-low.

Bank of America

Bank of America shares have seen a pullback on Thursday, despite an impressive set of earnings. However, the long-term outlook provides a particularly interesting buying opportunity after a retracement into inside trendline support. With that in mind, bullish positions are favoured here, with a break back below trendline and $36.64 required to bring an end to this ongoing uptrend.