Post-earnings trade setups: Pfizer, Royal Dutch Shell, and Glencore
With Q3 earnings season in full swing, Pfizer, Royal Dutch Shell, and Glencore 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.
Pfizer
Pharma stocks have been outperformers throughout the coronavirus pandemic, and Pfizer Inc (All Sessions) is one of the most prominent candidates to provide a vaccine that could ultimately bring a resolution to this crisis. With the CEO stating that he hopes their vaccine will be fast-tracked for use in November, we are looking at a volatile ahead for this stock. Much like the wider market itself, Pfizer has seen sharp losses over the course of the week. That selloff has taken price back into the 61.8% Fibonacci support level yesterday. With that in mind, there is a chance we could start to recover as traders look ahead to a critical month for this stock. Watch out for a potential rebound from either 61.8% or 76.4% Fibonacci support levels if we are to see the wider uptrend come back into play.
Royal Dutch Shell
Shares in Royal Dutch Shell PLC have been on a steady downtrend since their June peak, with the steady increase in crude prices failing to sustain the stock. However, with the prospect of a sharp decline in demand, we have seen crude slump as traders head for the havens. A descending standard deviation channel has provided reliable resistance, and the recent rally towards that level provides a potential selling opportunity. With that in mind, a bearish outlook holds unless we see a break through the £10.35 resistance.
Glencore
The prospect of slowing growth does little to help the likes of Glencore PLC, with the commodity trading and mining company breaking into the lowest level in almost five-months today. That appears to complete the topping pattern seen since June. As such, further downside looks likely for this stock, with any short-term upside expected to provide a bearish opportunity unless we see a rise through we break through £1.71 resistance.
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