JD Wetherspoons: Well Positioned To Survive, Ascending Trend Line Holds
Fiona Cincotta May 6, 2020 9:51 AM
JDW is well positioned within the UK pub sector to return to profitability fast when the sector reopens.
Whilst the coronavirus lockdown meant that revenue dried up overnight for pubs, the broad expectation is that JDW is well positioned within the UK pub sector to return to profitability fast when the sector reopens.
The pub is looking to reopen its doors in or around June, although this largely depends on the British government which is due to set out its exit strategy announcement later this week.
Levels to watch:
JD Wetherspoons has dived from pre coronavirus levels of around 1540p to a March low of 494p However, the stock has rebounded 15% over the past month 6 weeks picking up from March 19th lows to today’s 920p.
The stock price remains supported by its ascending trendline and trades above its 50 and 100 sma on 4 hour chart.
Immediate support can be seen at 910p trendline support, prior to 883p (50 sma) and 800p (low 24th April)
Immediate resistance can be seen at 1047p (high 30th April) prior to 1117p (high 13th March).
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