Kingfisher’s shares near technical support level

Market chart showing uptrend
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.

Market chart demonstrating Kingfisher Shares Near Technical Support Level. Published in December 2020 by FOREX.com

Source: TradingView, Gain Capital

 
Related tags: UK Equities

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