Bunzl: new up leg in sight?
Nicolas Suiffet December 16, 2020 8:22 AM
Bunzl, a multinational distribution and outsourcing company, said that “group revenue for the year is expected to increase by approximately 8%.
Bunzl, a multinational distribution and outsourcing company, said that “group revenue for the year is expected to increase by approximately 8% at actual exchange rates and by approximately 9% at constant exchange rates, due to similar levels of growth from both the increase in organic revenue and the impact of acquisitions.”
The group added that “the operating margin in 2020 has continued to benefit significantly from the mix of products sold and is expected to be higher than the prior year."
From a technical point of view, the stock price is under consolidation within a downward-sloping channel. Prices failed to break above a key horizontal resistance threshold near 2633p. A key support base has formed at 2283p (Bollinger + overlap) . A breakout confirmation of the consolidation pattern would call for a new up leg. 1512p is trigger point for acceleration towards 2633p and 2780p. Prices need to stand above 2283p to maintain the bullish bias.
Source: TradingView, Gain Capital
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.