ABF In Focus Ahead Of Trading Update
Fiona Cincotta July 1, 2020 8:13 AM
Thursday 2nd July Associated British Foods is set to update the market over the impact of the lockdown and how initial trading is faring after stores reopened
Primark owner ABF is expected to update the market today. The update comes just over 2 weeks after British government eased lockdown restrictions and stores reopened, albeit with strict social distancing measures in place. The 2-meter rule is also set to be reduced further this weekend, meaning that stores will be allowed more shoppers to enter at anyone time which is good news for business.
Primark is trding down -20% year to date. It trades above its 50 day sma, a support which has held since the beginning of June. The stock continues to trade below its 100 day sma a level which offers strong resistance at around 2000p. This is a level which the stock has failed to trade over since 10th June.
A break above 2000p could open the door to resistance at 2140p (June high).
On the flip side, a breakthrough the 50 sma around 1865p could open the door to 1840p (June low) prior to 1740p (low 26th May)
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