H&M Sales dropped 50% in Q2 – key resistance at 170

Hennes & Mauritz, the clothing-retail company, reported that 2Q net sales dropped 50%

Downtrend 2

Hennes & Mauritz, the clothing-retail company, reported that 2Q net sales dropped 50% on year to 28.66 billion Swedish krona, while online sales were up 36%. The company said: "The sales development during the second quarter was severely affected by the Covid-19 situation. At present approximately 900 stores, representing around 18 percent of the group's 5,058 stores, are still temporarily closed. The H&M group's total sales during the period 1 - 13 June this year decreased by 30 percent in local currencies compared with the same period in 2019."

From a chartist’s point of view, prices retraced to the resistance level in a pullback rally during an ongoing downtrend. The daily Relative Strength Index (RSI, 14) reversed down from its overbought territory. Readers may want to consider opening short positions below the 61.8% Fibonacci resistance level at 170SEK with targets at 130SEK and 117.6SEK (May 14 low). Alternatively, a push above 170SEK would call for a reversal up trend with 190SEK and 200SEK as targets. 

Source: GAIN Capital, TradingView

More from Equities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.