Diageo reversing down on poor results
Remy Gaussens August 4, 2020 4:24 AM
Stock price failed to confirm the upside breakout of a key declining trend line in place since September top
Diageo, British brewer, reported full-year results: "Reported net sales (11.8 billion pounds) were down 8.7% driven by organic declines. Reported operating profit (2.1 billion pounds) declined 47.1%, driven mainly by exceptional operating items and organic net sales. (...) Organic net sales were down 8.4%, (...) Basic EPS of 60.1 pence decreased by 54.0% (...) final recommended dividend of 42.47 pence per share (...) This brings the full year dividend for fiscal 20 to 69.88 pence per share, an increase of 2%."
From a chartist point of view today’s opening is offering a strong bearish signal as the stock price failed to confirm the upside breakout of a key declining trend line in place since September top. Also, the price fell back below its 5-day moving average and struck against the declining 200-day now capping prices. As a consequence, traders may consider short position below the 200-day moving average currently at 2890and target a decline towards April low at 2420. Alternatively, a push above 2890 would open the way towards February top at 3180.
Source: GAIN Capital, TradingView
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