Capitalize on 2 Post-Earnings Trends (TER & GILD Analysis)

Revenue A must-see event on the market every week.

So I track some of them every Monday Revenue Edge — To find the potential breakouts and big moves that follow.

By using revenue formation and revenue as a guide, you can observe key trends and understand the key trends they are just starting out.

We saw us some great behavior Revenue Edge Last week’s inventory.

Johnson & Johnson jumped into the news, reporting higher-than-expected earnings. But that wasn’t enough to get out of the rising triangular pattern on the price chart.

This is still for keeping your radar.

Texas Instruments has made a breakout — just on the downside. Chip stocks exceeded analysts’ expectations, but weak outlook caused investors to fall by more than 5%.

That’s enough to break the key support we’ve seen and shows the further weakness of the stock. Make sure the stock price is down this week. Then you can see that it was a clear breakout to the downside.

That’s why we track stocks throughout the earnings season. This is a big move of the day that highlights bigger trends.

I’m an option trader, so I live for this kind of movement. You need to move stocks to make money. Learn why it’s an option trader’s daily dream to know these key trends and find short-term opportunities. True option master ­— A daily newsletter specializing in options trading. click here Sign up now. It’s free!

If not yet Join us today To gain insight into daily trading opportunities.

for us Revenue Edge Today I have two more on radar — Teradyne (Nasdaq: TER) When Gilead Sciences Inc. (Nasdaq: GILD)..

Let’s dive …

Revenue Edge Stock number 1: Teradyne, Inc. (Nasdaq: TER)

Earnings announcement date: After closing on Tuesday.

Expectations: Revenue of $ 1.75 per share. Revenue is $ 1 billion.

Analyst Average Rating: Excellent

Teradyne is a semiconductor company that manufactures automatic test equipment. This helps companies speed up the testing process and bring new technologies to market faster.

It operates in the bright red sector of the market, which investors cannot get enough. This has almost doubled the TER in the last 12 months. However, most of this profit was in the period of only five months from September 2020 to January 2021.

Stock prices have fallen by double digits since peaking earlier this year, and investors are looking at this next earnings event as a catalyst for further stock prices.

With a highly volatile stock price in 2021, its price chart created a classic wedge pattern. In this pattern, the decrease in resistance (red) converges on the increase in support (green). And the revenue could be a make or break event.

Find a bullish TER breakout

This wedge pattern is why we added the stock to the “Bank It” list on June 3rd after the strong backlash we saw — at some point we were looking for a bullish breakout.

It hasn’t happened yet, but the pattern is still going on, so I’m still bullish towards earnings.

Regardless of how the stock price occurs, I’m looking for potential double-digit movements in earnings thanks to the volatility it saw-basically 10% in a few days without news. Fluctuation. Revenue is a major event and you can easily move TER.

Texas Instruments has been another chip maker since last week. And while it exceeds analysts’ expectations, it has sunk into the news and may now be collapsing based on price charts.

The Teradyne market is a bit different, but it can be treated like any other chipstock. That’s why it’s not enough to know if it’s above or missing. The market can always react differently.

Revenue Edge Stock 2: Gilead Sciences (Nasdaq: GILD)

Earnings announcement date: After closing on Thursday.

Expectations: Revenue of $ 1.75 per share. Revenue of $ 6 billion.

Analyst Average Rating: Excellent

GILD is a beautiful example of an upward triangle, one of my favorite technical patterns.

Before that, let’s take a look at what we experienced to find out where Gilead is.

They were one of the first companies to offer treatments to help fight and were the first treatments approved by the FDA. But stocks recovered only during the pandemic — the opposite of other markets. Equities actually peaked in May 2020, but the broader market bottomed out.

The logic here is that treatment for COVID-19 is less in demand as vaccines have been deployed and are now widely adopted.

It sends stock on a roller coaster and loses one-third of its value before a 20% rebound.

Stocks are now sitting in a beautiful rising triangle pattern, and it’s almost impossible not to spike this week’s earnings.

See how strong resistance rides across the top in red, and the rising support in green is at the point of success or failure of the pattern.

GILD triangle pattern shows breakout

GILD triangle

At the moment, there is only a 2% gap between the two lines. This is a penny of movement after the earnings announcement.

And that’s what the options market is looking for. Currently, they are pricing only with a 2% move this week.

Of course, it’s still possible. With 2% fluctuations in earnings, GILD slowly breaks out of this long triangular pattern.

Or, a jump of 5% or more occurs. This is what I’m looking for to show a clear breakout.

When GILD occurs, you can use that pattern to think about what to expect. Just taking the pattern height from low to high will give you the expected move of $ 14 per share. Each breakout costs about $ 69 per share, which means we expect a 20% price volatility in the coming weeks.

So a 5% or 10% increase in revenue is just the beginning of an even bigger move.

It’s a trend you want to use with GILD.

Chad Shoop is a chartered market technician and option expert at Banyan Hill Publishing. He is the editor of three major newsletters. Quick hit profit, Automatic profit alert When Pure income.. His content is frequently published on Investopedia and Seeking Alpha.Check him out YouTube channel To see his latest market insights.

click here To participate in his free newsletter Weekly option corner..

Capitalize on 2 Post-Earnings Trends (TER & GILD Analysis) Source link Capitalize on 2 Post-Earnings Trends (TER & GILD Analysis)

Related Articles

Back to top button