Checking In on This Cloud Stock Ahead of Earnings

The equity has a history of mixed post-earnings reactions

Digital Content Manager
Nov 24, 2021 at 2:39 PM
facebook X logo linkedin


The shares of Box Inc (NYSE:BOX) are up 2.2% at $24.19 this afternoon, recovering from yesterday's drop to its lowest level since September, following a rise in the 10-year Treasury yield. The company is now eyeing its third-quarter earnings call, which is due out after the close on Tuesday, Nov. 30. Below, we will explore the security's technical setup, as well as some of its previous post-earnings activity. 

Box stock has been cooling off from a rally to the $27 level over the last pew weeks, which is just shy of its July 2, three-year high of $27.40. This recent pullback also has the equity eyeing its second-straight close below the 180-day moving average, which captured its September trough. Longer term, BOX sports a 33.9% year-to-date lead.  

BOX 180 Day

The equity has a history of mixed post-earnings reactions, finishing half of the last eight next-day sessions higher during the last two years, while the other half was lower, including an 8.8% drop in December 2020. Options traders are pricing in an 8.5% swing for BOX this time around, which is more than double the 4% move it averaged after its last eight reports, regardless of direction.

Short sellers are already hitting the exits, though Box stock still looks ripe for a short squeeze. Short interest fell 8.2% in the last two reporting periods, yet the 10.37 million shares sold short account for a significant 7% of the security's available float, or nearly one week's worth of pent-up buying power. 

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI