Jump to content

Post-earnings trade setups: Virgin Galactic, Walt Disney, and Eastman Kodak


MongiIG

Recommended Posts

 

With Q3 earnings season drawing to a close, Virgin Galactic, Walt Disney, and Eastman Kodak provide us with potential trading opportunities.

BG_walt_disney_4234324.jpgSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 12 November 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.

Virgin Galactic

Virgin Galactic enjoyed a rare boost in the early part of the week, following an earnings report that saw the space tourism firm post better-than-expected revenues and plans for their first commercial flight in the quarter four (Q4) 2022. \

Nonetheless, we saw the negative sentiment return once again in the following days, with the weekly candle largely flat as we head towards the weekend.

However, it is worthwhile noting that this positive news came as price reached a crucial area of support, with an ascending trendline coming into play in late-October. A break below trendline and $14.35 would largely negate the bullish trend in place over the course of the past two years.

With that in mind, this could be an opportune moment for the bulls to come back into play. Whether that happens remains to be seen, but the risk-to-reward perspective certainly looks appealing if we can remain above $14.35.

As such, watch out for a potential rebound from here, with a push above $24.41 bringing greater confidence for the bulls. Until then, the bearish trend does still remain intact.

SPCE-Weekly-2021_11_12-09h50.pngSource: ProRealTime

Walt Disney

Walt Disney shares have been hit hard over the course of the week, with worries over Disney+ subscriber numbers overshadowing improvements in Covid-affected areas of the business such as parks and hotels.

This has taken price back down into the $158.50 support level, with a break below that point likely to bring another leg lower for the stock.

For now, we are yet to see a bullish reversal sign despite the long-term uptrend that would ultimately favour such a position. A break up through $179.23 would bring an end to this bearish phase, but we remain at risk of further weakness until such a break occurs.

DIS-Daily-2021_11_12-10h10.pngSource: ProRealTime

Eastman Kodak

Shares in Eastman Kodak have been somewhat drab of late, with price treading water for months now.

However, this week saw them post both $8 million net income and profits of 6c per share that could help lift sentiment. Price action appears to have been forming a basing pattern over recent months, but there is a good chance we see price break higher before too long.

A rise up through the $7.44 and $7.82 levels would bring greater confidence of such a breakout, with investors hoping to see another run higher after a period of low volatility.

KODK-Daily-2021_11_12-10h08.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Join the BYDFi Demo Trade Profit Posting and grab your chance to share in a 10,000 USDT prize pool!  Show off your trading skills, post your profits, and let's see who comes out on top! Don't miss out on this chance to win big! 🎉
    • The #meme hype surrounding #Solana may have slowed down with the emergence of the Ton network, but it seems that the enthusiasm for Solana is not fading away entirely. While new networks like Ton are gaining attention, Solana has previously generated significant interest and wealth for investors. However, there are concerns about scammers exploiting the Solana network with various honeypot and rugpull schemes, leading some traders to explore other chains like Base and Ton. Despite the rise of Ton blockchain, a new Solana meme project associated with Pepe the Frog has started to gain traction. One such project, LandWolf, has already amassed over 5,000 active Telegram members and 5,000 Twitter followers, indicating early interest and community engagement. The project aims to unite Pepe fans with the broader crypto community, offering a unique value proposition. LandWolf's ability to secure listings on top-tier exchanges like Bitget showcases the developer's influence and the project's potential. Some enthusiasts have already dubbed $WOLF as the biggest meme coin on Solana, highlighting the ongoing interest and excitement within the Solana ecosystem.
    • Meme coins are cryptocurrencies inspired by internet jokes, like Dogecoin. They're inherently risky due to their extreme price swings. While some meme coins remain purely for fun, others are trying to develop actual uses in gaming or finance. These high-risk, high-reward investments often attract "degenerates" (or "degens") who chase quick profits by jumping into unproven projects without much research.   The potential for massive returns with meme coins can't be ignored, however. Dogecoin's 9800% surge in 2021 exemplifies this. A $100 investment could have turned into a life-changing $9800. This experience highlights the potential regret of focusing solely on "safe" investments with lower potential returns.   Taking inspiration from this, some experienced investors are now allocating a small portion of their portfolio to latest meme coins.one of the latest is Miggles listed on Bitget. This strategy allows them to potentially benefit from future bull runs while limiting their overall risk.
×
×
  • Create New...
us