Post earnings trade setups: Zoom, Salesforce, and Dollar General
With Q3 earnings season slowing down, Zoom, Salesforce, and Dollar General 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.
Zoom Video Communications
Zoom Video Communications Inc (24 Hours) have been one of the years bit success stories, with the global lockdown sparking a surge in demand for video conferencing technologies. However, with the world progressively looking beyond the coronavirus restrictions, we are seeing demand for the stock falter. Interestingly the rebound seen in late-November took price back into trendline resistance which capped any short-term resurgence. To the downside, the key level to watch comes in the form of the $366.64 swing-low dating back to early-November. A break back below that level would bring a wider bearish picture into play as it confirms the creation of both a lower high and lower low.
Salesforce
Salesforce Inc (All Sessions) shares took a tumble this week, with the deal to buy Slack raising some questions amongst traders. The company is renown for its aggressive acquisition strategy, yet at $27.7 billion it stands as their most significant investment to date. From a charting perspective, the Wednesday gap lower has taken us back below trendline support. However, the uptrend seen throughout the past eight-months does still remain intact unless we see $191.74 broken. With price back around the 76.4% Fibonacci support level, this pullback looks like a good opportunity for the bulls to come back into play.
Dollar General
Dollar General shares have dropped back towards the bottom of an ascending channel as the stock trades within a clear uptrend. That highly reliable trend remains in play until we see a break below the $206.16 swing-low. Until then, this recent pullback looks like a potential buying opportunity for a highly reliable trending stock.
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