WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: Urban Outfitters’ shares jump after earnings beat

Posted by WorldWideMarkets . on Mar 7, 2016 8:02:55 PM

WWM_URBN_MAR_7_2016.jpg

Urban Outfitters (URBN) shares rallied over 6.0% in after-hours trading to $31.55 after reporting a strong fourth quarter earnings. Shareholders were pleased with the company’s earnings release after adjusted earnings per share came in five cents higher than expectations at $0.61 and revenue came in at $1.01 billion, a slight miss from the eyed $1.02 billion. Last quarter shares also beat on the headline number, but the stock price traded lower as investors frowned upon whether or not the announcement of a pizza chain purchase would successfully change their customer’s shopping experience and help promote shopper traffic. During the company’s conference call, the company announced they also plan to open 26 new stores.

Price action on the URBN 240-minute chart shows the initial breakout of the $30.00 resistance level. It appears that price will be poised to open on Wednesday above the 200-day SMA. If bullish momentum continues price may have a clear path to the $36.50-36.90 zone. If we see downward pressure return, key support may come from the psychological $26 handle. If that level breaks, we could see price eventually target a slide towards $24.00.

The Trade: Buy URBN at $31.50, with a stop loss at $29.50 and a take profit at $36.50.  The Risk/Reward Ratio is 1:3 

Topics: Equities Market, Stocks, US equities

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!