Kingfisher’s shares near technical support level

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.

Uptrend 2

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.

Source: TradingView, Gain Capital


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.