Post-earnings trade setups: Redrow, FedEx, and Galliford Try

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.

Redrow

Redrow PLC shares have plunged over the latter part of the week, with the stock tumbling into afresh four-month low. The daily timeframe highlights that recent decline, with the inability to break into a higher high ultimately giving way to this latest breakdown. With that in mind, there is a strong chance we will see further downside from here, with the intraday trend of lower highs and lower lows signaling further downside to come. This bearish outlook remains in play unless we see a break through the £4.74 mark.

FedEx

FedEx Corphas enjoyed an incredible post-March recovery, with the stock reaching record highs on a weekly basis. The recent pullback appears to have provided us with another possible buying opportunity as price falls back towards trendline support. With a clear uptrend in play, there is plenty of reason to expect further upside, with a bullish trend in play unless we see a break below the $217.55 swing-low.

Galliford Try

Galliford Try PLC has enjoyed a sharp rebound this week, despite the clear-cut downtrend seen over the course of 2020 thus far. However, we are already seeing the bears come back into play once more, with the rebound falling short at the 76.4% Fibonacci resistance level. With that in mind, further downside looks likely, with another leg lower expected in the absence of a full bullish breakout. As such, further downside is expected, wheRe a break through £1.04 would bring an end to that bearish downtrend.