JD Wetherspoons: Well Positioned To Survive, Ascending Trend Line Holds
Fiona Cincotta May 6, 2020 2:51 PM
JDW is well positioned within the UK pub sector to return to profitability fast when the sector reopens.
Whilst the coronavirus lockdown meant that revenue dried up overnight for pubs, the broad expectation is that JDW is well positioned within the UK pub sector to return to profitability fast when the sector reopens.
The pub is looking to reopen its doors in or around June, although this largely depends on the British government which is due to set out its exit strategy announcement later this week.
Levels to watch:
JD Wetherspoons has dived from pre coronavirus levels of around 1540p to a March low of 494p However, the stock has rebounded 15% over the past month 6 weeks picking up from March 19th lows to today’s 920p.
The stock price remains supported by its ascending trendline and trades above its 50 and 100 sma on 4 hour chart.
Immediate support can be seen at 910p trendline support, prior to 883p (50 sma) and 800p (low 24th April)
Immediate resistance can be seen at 1047p (high 30th April) prior to 1117p (high 13th March).
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.