Tate & Lyle’s rebound running out of steam

The short term rebound is running out of steam near the 61.8% Fibonacci retracement level of the previous down move

Trader 2

Tate & Lyle, a global provider of food and beverage ingredients, said in its update: "While trading in March showed limited impact from the Covid-19 pandemic, the lockdowns in place in many countries across the world throughout April, most notably in our largest markets of the US and Europe, have led to some significant changes in demand patterns for our products. "


"Primary Products volume was significantly impacted by the first full month of lockdown in the US. The financial impact of lower demand was partially mitigated by prompt actions taken in March to optimise cash and reduce costs."

From a technical perspective, the short term rebound is running out of steam near the 61.8% Fibonacci retracement level of the previous down move. In addition, the 50-day simple moving average is still descending, indicating that prices rose too quickly. The Relative Strength Index (RSI, 14) is pushing below its horizontal support.  As long as 717p is resistance, a consolidation move towards lower Bollinger band at 641p is likely. 

Alternatively, a push above 717p would call for a new up move towards horizontal resistance ta 775p 

Source: GAIN Capital, TradingView


Related Articles

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.