Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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: Microsoft, Barclays, and Rio Tinto

With Q2 earnings season in full swing, Microsoft, Barclays, and Rio Tinto provide us with potential 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.


Microsoft shares have been easing back once again, with the stock losing traction towards the end of a week that has brought significant volatility.

However, with the tech giant beating revenue forecasts and providing an optimistic outlook, there is a strong chance this current pullback will provide us with a fresh buying opportunity.

With the ascending standard deviation channel and deeper Fibonacci levels coming into play, any further downside would simply provide a better opportunity to get in on this bull run. That bullish outlook remains in play unless price breaks below the $275.24 swing-low.


Barclays saw an incredible rise in profitability this week, with the investment banking division driving a dramatic rise in earnings for the bank.

That outperformance brought a rise into the key £1.78 swing-high, raising the likelihood of a bullish reversal after the recent decline into trendline support. The inability to break through that £1.78 level means we are yet to see such a bullish breakout signal.

However, with the bank looking upward, there is a good chance we will see price rise from here. Certainly a break up through that resistance level would provide greater confidence that this recent pullback is over, with risk of a deeper retracement remaining until that move takes place.

That being said, whether we see that deeper pullback come into play or not, a bullish view holds unless price drops below £1.29.

Rio Tinto

Rio Tinto benefitted from a big surge in iron ore prices, with the company posting a record first-half performance as a result.

The stock broke below trendline support back in June, but that period of weakness brought price back into the 76.4% Fibonacci support level. We have been on the rise since then, with price continuing to create higher lows.

With that in mind, the uptrend does remain intact unless price drops back below the $57.09 swing-low.

Related articles

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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.