BMW remains within a bullish channel

BMW, an automobile group, said it still expects group profit before tax "to be significantly lower than in 2019", while lowering automotive segment EBIT margin to 0% - 3% from 2% - 4% previously

Uptrend 2

BMW, an automobile group, said it still expects group profit before tax "to be significantly lower than in 2019", while lowering automotive segment EBIT margin to 0% - 3% from 2% - 4% previously. The company added: "The decisive factor for the adjustment is that the measures to contain the corona virus pandemic are lasting longer in several markets and are thus leading to a broader negative impact than was foreseeable in mid-March. It is therefore apparent that delivery volumes in these markets will not - as was previously assumed - return to normal within a few weeks. The highest negative impact is expected in the second quarter of 2020." 


Meanwhile, the company reported that 1Q net income slipped 2.4% on year to 574 million euros, while EBIT jumped to 1.38 billion euros from 589 million euros in the prior-year period on revenue of 23.25 billion euros, up 3.5%.

From a technical perspective, the stock price has completed its pullback to the 50-day simple moving average and is posting a rebound. Prices remain within a short term bullish channel. Prices need to stand above 45,7E to maintain the bullish bias. The daily Relative Strength Index (RSI, 14) is holding above its horizontal support. Next resistance zone is set between 57,3E and 60,5E. 

Caution: A break below 45,7E would call for a reversal down trend towards March 19th low at 36,3E.

Source: GAIN Capital, TradingView


Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.