H&M Sales dropped 50% in Q2 – key resistance at 170
Nicolas Suiffet June 15, 2020 3:20 AM
Hennes & Mauritz, the clothing-retail company, reported that 2Q net sales dropped 50%
Hennes & Mauritz, the clothing-retail company, reported that 2Q net sales dropped 50% on year to 28.66 billion Swedish krona, while online sales were up 36%. The company said: "The sales development during the second quarter was severely affected by the Covid-19 situation. At present approximately 900 stores, representing around 18 percent of the group's 5,058 stores, are still temporarily closed. The H&M group's total sales during the period 1 - 13 June this year decreased by 30 percent in local currencies compared with the same period in 2019."
From a chartist’s point of view, prices retraced to the resistance level in a pullback rally during an ongoing downtrend. The daily Relative Strength Index (RSI, 14) reversed down from its overbought territory. Readers may want to consider opening short positions below the 61.8% Fibonacci resistance level at 170SEK with targets at 130SEK and 117.6SEK (May 14 low). Alternatively, a push above 170SEK would call for a reversal up trend with 190SEK and 200SEK as targets.
Source: GAIN Capital, TradingView
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.