ITV, Vodafone, Sainsbury’s & Tesco Technicals

<p>Tuesday UK earnings results Vodafone revenues are expected £21.8 billion, down from £23.5 billion for the same period last year, with a decline in profits […]</p>

Tuesday UK earnings results
Vodafone revenues are expected £21.8 billion, down from £23.5 billion for the same period last year, with a decline in profits to £6.8 billion from £7.5 billion. Vodafone revenues from rivals’ unlimited deals has been behind the 14% decline in the share price from the summer highs.  Earnings from its US stakes are expected to offset the aforementioned negatives. Watch the 200-DMA at 164, which coincides with the November 2011 lows.

ITV Q3 earnings are for the period of heavy Olympics coverage from rival BBC, which could impact advertising revenues for its core channels. The company was upgraded to “positive” from “stable” last month by Standard & Poors’ partly due to a profit margin exceeding 20% over the last two years. Improved four-hour stochastics could suggest a retest of 87.80, followed by the 88.50 resistance –55-DMA. Key support stands at the 100-DMA of 83.40.

Wednesday UK earnings results
Sainsbury’s second half-year results on WEDNESDAY are expected to show a 5% rise in pre-tax profits to £371 million. 1.9% like for like sales rose 1.9% in the last reporting period. Tesco is the country’s third supermarket whose market share rose to 16.8% at the expense of Tesco and Morrisons due to Paralympics sponsorship and investment in its own brand products. Today, Sainsbury’s tested its 55-DMA for the first time since June, coinciding with improved daily stcohastics, which show all but conformation for further upside. Will need to see a close above 351 (base of previous consolidation) before assessing the potential for 358 and above.

Tesco does not report earnings but its shares are worth looking at due to the results from rival, Sainsbury’s and the UK macro data on employment (Wednesday and retail sales (Thursday). Although it remains supported at the 200-DMA of 321.90 throughout last week, Tesco is further confined within a wedge, whose resistance stands at the 55-DMA of 328.60. This suggests a potential breakout or a retest of the 321 support.

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.