Kingfisher’s shares near technical support level
Nicolas Suiffet December 7, 2020 8:33 AM
Kingfisher, the retailing company, said it intends to return in full the U.K. and Republic of Ireland business rates relief received as a result of the COVID-19 crisis.
Kingfisher, the retailing company, said it intends to return in full the U.K. and Republic of Ireland business rates relief received as a result of the COVID-19 crisis. The company stated: "Kingfisher's total annual business rates bill eligible for this relief is approximately £130 million, of which c.£110 million falls in FY 20/21 and the balance in FY 21/22. Following this decision, we now anticipate that FY 20/21 adjusted profit before tax will include c.£85 million of non-recurring cost savings (previous guidance: c.£175 million), net of any one-off COVID-related costs."
From a chartist point of view, the stock price remains in consolidation mode but is now approaching from a key support zone around 260p (overlap). The weekly RSI (14) is nearing a former declining trend line which will now play a support role. Readers may want to consider the potential for opening Long positions above the technical support level at 260p with 292.7 and 325 as targets. Caution: a break below 260 would trigger a bearish acceleration towards the next support threshold at 260p.
Source: TradingView, Gain Capital
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.