Greggs set to report 1st annual loss since IPO
Fiona Cincotta March 15, 2021 4:19 AM
Greggs is due to report on Tuesday 16th March, The pandemic is expected to have eaten a chunk out of profits.
Greggs has already warned that the pandemic has eaten a slice out of profits and has said that it expects a full year loss in the region of £15 million compared to a profit of £108 million the year earlier. Full year sales are due in at £811 million down from £1.17 billion in 2019 so no huge surprises are expected there.
Where next for Greggs share price?
Greggs has traded in a firm uptrend since early November, although the rally appears to have run out of steam since the start of the month.
The share price has slipped below its three month ascending trendline after failing to push beyond 2200. The price has traded in a tight range of around 100 points since the start of the month capped on the upper side by 2200 and on the lower side by 2100.
The bias is very slightly tilted towards the upside, with the share price trading above the 50 sma and just above the 20 sma, whilst the RSI remains in bullish territory.
However, with results due tomorrow it could be prudent to wait for a breakout trade. A solid update and forward guidance could see the bulls push above 2200 to target near term resistance at 2300. A brea above this level would bring 2475 the pre-pandemic February high into play.
On the flip side. Disappointing numbers could see the bears take control. Sellers will be looking for a break below 2100 before support is tested at 2000 round number and February ’21 low. A breakthrough this level could negate the current bullish trend.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.