SAP confirmed 2020 outlook - Bullish but risky trend in place
Remy Gaussens July 27, 2020 10:30 AM
2Q total revenue edged up 1.2% to 6.74 billion euros including 2.04 billion of cloud revenue, up 20.3%.
SAP, a German software firm, reported that 2Q net income grew to 1.38 billion euros from 1.30 billion euros in the prior-year period, and non-IFRS operating profit was up 7.7% on year to 1.96 billion euros. 2Q total revenue edged up 1.2% to 6.74 billion euros including 2.04 billion of cloud revenue, up 20.3%. The Company reconfirmed its 2020 outlook. Also, the Company announced plans to take its data-analysis unit Qualtrics public through an IPO.
From a technical point of view, the stock price is trading close to its historical high reached last week, before Friday opening sharp correction. Yet, prices remain supported by their upward crossing 20 and 50-day moving averages. However, as the daily RSI is posting a bearish divergence, the risk of a downturn is relatively high thus a tight invalidation level around the 20-day moving average is warranted. As a consequence, traders may consider long position above 133.00 with a target at 150: 1.618 Fibonacci projection of March to May up leg. Alternatively, a downside breakout of 133 would trigger a bearish acceleration towards the former resistance area at 127.00 now acting as a support.
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.