Performance metrics and trade details for IHS breakout.
IHS Earnings Trade Notes
Earnings Beat & Initial Setup
IHS delivered a strong earnings beat on March 18, 2025. Despite a fantastic pre-market report, the stock only gapped up 3.5%, making it unlikely to appear in standard Episodic Pivot scans (which typically filter for 10%+ gaps). However, scanning for 52-week highs would have surfaced this stock.
Entry Using Breakout
The initial gap-up resulted in highly volatile price action with an 11% risk if entering via a 1-minute ORH, making a managed-risk entry difficult. Instead of discarding the setup, patience paid off. On Day 2, the stock formed an inside day, and on Day 3, it broke above Day 2’s high with strong volume, offering the first entry with a low 3% risk. On Day 4, it broke out above Day 1’s high with massive volume, providing another entry opportunity.
Entry Using VWAP
Near Day 1’s close, buyers took control, and the stock broke above the AVWAP. Using a tiny inside bar high as an entry point allowed for a controlled 3.6% risk.
Gain & Performance
By Day 4’s close (March 21, 2025), the first breakout entry yielded a 13% gain. The VWAP-based entry on Day 1 resulted in a 20% gain.
Conclusion
Earnings gap setups remain powerful even in a challenging market. Additionally, IHS, a UK-based company, benefited from the ongoing outperformance of international markets compared to the U.S.
