DS Smith is not confident enough to resume dividend payments

Downward trend
DS Smith, the packaging company, released full-year results: "Operating profit increased to £455 million, a 6 and 7 per cent growth on a constant currency and reported basis, respectively (2018/19: £427 million)”.  However, the company said it had decided against paying a dividend while the market remains uncertain. 

From a chartist point of view, the stock price struck against a key resistance at 356p and is reversing down. Prices escaped from an upward-sloping channel. The bearish gap opened this morning provides a first resistance at 320p. The daily Relative Strength Index (RSI, 14) is bearish and not oversold. Regarding the trading strategy, as long as the resistance zone 320p – 356p is not penetrated, the bias remains bearish with 244.8p as next bearish target. Alternatively, a break above 320p – 356p would call for a reversal up trend towards 397.8p. 

Source: GAIN capital, TradingView


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