Philips faces challenging resistance after Q2 update
Nicolas Suiffet July 20, 2020 3:42 AM
Philips, the Dutch conglomerate, announced that Q2 net income dropped 15% on year to 210 million euros and EBITA fell 12% to 388 million euros on revenue of 4.40 billion euros
Philips, the Dutch conglomerate, announced that Q2 net income dropped 15% on year to 210 million euros and EBITA fell 12% to 388 million euros on revenue of 4.40 billion euros, down 6% (-6% comparable growth). Regarding the outlook, the company said: "We expect to return to growth and improved profitability for the Group in the second half of the year, (...) Consequently, for the full year 2020 we continue to aim for a modest comparable sales growth and Adjusted EBITA margin improvement."
From a chartist point of view, the stock price is posting a rebound and remains supported by its rising 20DMA currently at 42.38E. The daily Relative Strength Index (RSI, 14) is bullish and not overbought. However, the stock price faces a challenging resistance at 45E (January 2020 high). Investors have to remain cautious as these levels may trigger profit taking. The bias remains bullish above 36.68E. A break above 45E would open a path to see 47.9E (Fibonacci projection). Alternatively, a push below 39.68E would call for a reversal down trend towards 36.8E and 33.4E.
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.