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Post-earnings trade setups: PepsiCo and Levi Strauss


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Post-earnings trade setups: PepsiCo and Levi Strauss

With just a handful of earnings released this week, PepsiCo and Levi Strauss provide us with potential trading opportunities.

bg_pepsi_1527659.JPGSource: Bloomberg
 
 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 08 October 2021 

This article looks at some of the big movers off the back of recent earnings announcements, as we try to find stocks that provide potential trading opportunities.

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.

PepsiCo

PepsiCo shares have been lifted by news of higher-than-expected revenues in the three months to September, with investors largely ignoring the fact that supply issues look set to drive prices higher in 2022.

That would primarily be down to the fact that the firm seems willing to pass those increased costs on to the consumer rather than decimating margins.

The stock has pushed higher after a period of declines that took us back into the 61.8% Fibonacci support level at $150.36. The wider uptrend holds, and we expect to see new highs in place before long. That trend holds unless we break back below $144.63.

PEP-Daily81021.pngSource: ProRealTime

Levi Strauss

Levi Strauss shares have turned upwards after an earnings report that saw the firm post better-than-expected earnings and sales for the fiscal third quarter.

The firm’s diversified manufacturing model means they have been relatively less affected by recent supply bottlenecks.

From a charting perspective, the push through $26.28 comes off the back of a decline into the $24.22 support level. This latest period of downside looks a buying opportunity given the long-term uptrend in place here.

With that in mind, a bullish outlook is in play until price breaks back below the recent low of $24.00.

LEVI-Daily81021.pngSource: ProRealTime
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