• Euro could ignore gloomy Eurozone PMIs
• The FOMC is the key risk event today, US retail sales also in focus
• Fed expected to stay on the side lines waiting for developments from vaccine roll out & Congress over stimulus
• Would need to cast doubt over easy policy for longer to bounce the USD
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Dixons Carphone continues rally as profits rise
• Electrical retailer reported strong rise in H1 profits with strong online performance
• Pre-tax profit of £89 million vs £2 million same period last year
• Trading strong 6 weeks to 12 Dec LFL sales +16%
Dixons Carphone has rallied over 100% since its Mid-March lows. After trending lower across June and July, a series of higher high and higher lows has been in place since early August. After hitting an 8 month high of 121p in November the price has eased back finding support on the ascending trend line at 101p last week.
The price trades comfortably above 100 day sma and is testing the 50 sma. Meanwhile the RSI which had be sloping lower is now pointing northwards.
A move above 50 sma could see Dixons Carphone test horizontal resistance at 110p prior to 121p (Nov high) and 130p (high 27th Feb). Meanwhile a move below the 50 sma could see the share price test the ascending trend linee support at 102p, prior to 100 sma support at 97p.
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