(6) Stake Of Big Investors Or Promoters
It is one of the most popular & key factors to determine stock movements after quarterly results. Big investors or promoters are often the first person to get internal news about a company.
Some of the things that are in access of such big investors include positive or negative news, future growth prospects, current performance, investment deals, outcome of board meetings, & many more.
On the other hand, small investors or traders are the last person to get access to those valuable announcements. Those high profile investors utilize their easy & quick access to company’s information to build their positions.
If promoters are increasing their stake in a given stock then it means company is on right growth track. However, opposite is true for stock in which promoters are cutting their stake.
[Read Also: 16 Tricky Ways To Identify & Pick Multibagger Stocks]
(7) Support & Resistance Levels
It is one of the most common & hidden secrets to determine stock moves after results. Stocks are usually found to trade between certain ranges.
They usually have support & resistance levels that are built over time. These levels are usually not broken easily.
According to a post published in InvestorPlace, you can easily determine the extent of a good opportunity after quarterly earnings by watching support & resistance levels.
A share trading around its bottom or support levels is likely to rise significantly after posting good results. Similarly, share trading around its top or resistance levels is likely to fall significantly after posting poor results.
- Stock Moves After Results: Shutterstock