Trading HOOD Post Earnings, Bullish BX

An earnings report can create excellent trading opportunities AFTER it's over.

Long time subscribers already know that my preference is to close out trades ahead of earnings. Take profits and maybe leave a runner.

I do not like to risk it all through an event that may or may not have a surprise waiting. Risk some, but not all.

In addition to trading ahead of earnings, I also enjoy all of the information the charts provide following these events.

One word. Opportunity.

This week HOOD reported and sold off, giving recent investors more pain than they wanted to deal with.

For traders, the chart opened up new doors. This is where money can be made.

HOOD daily candles revisiting AVWAP.

The daily candles have sold off and are very close to retesting the Anchored Volume Weighted Average Price (AVWAP) from prior earnings.

Notice this line provided support in September and has been steadily climbing. I like the odds that it provides support again.

Also note the 22.43 price level that was bounced off of to start October. The prior earnings AVWAP slides in right at this support level, providing confluence.

The higher highs and higher lows are also still holding true. Another bullish sign for HOOD.

Lastly, notice the relative strength index (RSI) at the bottom of the chart. It has dipped below the midpoint, signaling weakness. However, a quick reversal and pop back above this line would resemble the action in September prior to the recent run up.

This week I’ve got entries, support/resistance levels, profit targets, and options contracts I am considering for HOOD.

If you have not taken a look at BX, it is a great example of a bull flag that also happens to be following earnings.

This time we are a couple of weeks post reporting, but the consolidation that has taken place already presents a great setup.

BX daily candles

After a big run from 115 to 175, the candles for BX have cooled of only slightly and are holding above 165 firmly for two weeks.

I like this level as support for another launch higher and it also presents a clear stop loss level which makes for a simple but potentially lucrative trade.

The financial sector has a number of tickers making moves. I like the sector overall and I really like the charts for both HOOD and BX.

For HOOD, I’ve got a swing trade through the end of the year. BX is looking like a much shorter set up and I expect to exit within two weeks.

A huge thank you to those that have leveled up and upgraded!

I can’t thank you enough, but I can provide you with more trade ideas and the options contracts I’m considering.

Let’s get to both for these two tickers!