Jump to content

Post-earnings trade setups: Dollar General and easyJet


MongiIG

Recommended Posts

Post-earnings trade setups: Dollar General and easyJet

With a somewhat thin week of earnings, Dollar General and easyJet provide us with potential trading opportunities.

BG_easyjet_e456456.jpgSource: Bloomberg
 
 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 03 December 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.

Dollar General

Dollar General shares have slipped over the course of the week, despite an earnings report that brought stronger-than-expected third quarter (Q3) earnings, and an upward revision to the full-year sales outlook.

Nonetheless, with wider market weakness, we are seeing traders question demand in the event that Omicron drives business closures. The weekly chart highlights how price has dropped back into the lower boundary of a standard deviation channel.

A break below trendline and $203.88 support signals the potential for a bearish reversal phase. Until then, the bullish trend points towards a possible upward turn from here.

DG-Weekly-2021_12_03-10h34.pngSource: ProRealTime

easyJet

Airlines have seen a volatile week, with earnings coming just as traders are worrying about the potential implications of the Omicron variant.

While profits fell short of expectations, the airline did manage to beat predictions for revenues. The stock managed to regain some ground following the collapse late Friday.

However, the bearish trend down remains in play unless we see price rise through the £5.71 and £6.63 levels. To the downside, a break through the October 2020 low of £4.58 would point towards a bearish continuation.

EZJ-Daily-2021_12_03-15h45.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

    • I have not been a fan of either of exchanges and wallets native tokens but would wanna explore it now. I took interest from the current hype around BNB, OKB and BGB. These tokens particularly BNB and BGB has shown strength which is obviously due to increase in demand to take part in the most of the launchpool. BNB rose almost 80% in the past 1 year, BGB was on the spotlight with about 190% in a year. OKB may not be left out due to it's potential but has made any significant movement recently. Wallet tokens on the hand have also been doing well but may not be compared to Centralized exchanges imho; I have also monitored few wallet particularly trust wallet and C98 wallet. My best guess is we could be seeing the wallet tokens making impressive price action as we approach post halving due to increase in transactions and I wonder if any one here is considering the prospect BWB token for Bitget wallet. Launching pretty soon and airdrop participation in play. I would appreciate your speculative opinion on it potentials.
    • In the realm of cryptocurrency exchanges, playing by the rules isn’t just a suggestion—it’s a must for staying in the game. Most major centralized exchanges (CEXs) strive to adhere to these regulations, implementing measures to prevent money laundering and illicit activities. However, a recent controversy has emerged with BingX, a top CEX, defying US sanctions by allowing Iranian users full access to its platform. BingX facilitates Iranian Rial trading, directly violating US sanctions. They allow Iranian users to trade cryptocurrencies without KYC verification. This, along with offering peer-to-peer (P2P) transactions using Iranian fiat currency, further raises red flags. This incident is reminiscent of the past troubles faced by giants like Binance, who were caught facilitating transactions for sanctioned individuals, resulting in a $4.5 billion plea deal with US authorities in 2023. The question remains: will this defiance by BingX lead to its downfall? Regulatory bodies in the US, like the SEC or DOJ, might take action.However, the severity of the situation raises questions about the long-term viability of the exchange and whether it may face the prospect of closure or severe penalties for its actions. As governments grapple with the complexities of digital assets, CEXs that prioritize expansion over compliance will likely face increasing scrutiny and potential consequences.  
    • The exchange continues to offers it's  users significant opportunities through its ecosystem products like PoolX and Launchpool. By participating in these platforms, users can benefit from various services such as staking, liquidity mining, and accessing new project opportunities. PoolX enables users to stake their assets and earn rewards through flexible investment options. Launchpool provides users with the chance to participate in early-stage project offerings. Overall, engaging with Bitget ecosystem products can diversify investment portfolios and facilitate exposure to new and promising projects in the crypto space.
×
×
  • Create New...
us