Tate & Lyle’s rebound running out of steam
Nicolas Suiffet May 4, 2020 8:47 AM
The short term rebound is running out of steam near the 61.8% Fibonacci retracement level of the previous down move
Tate & Lyle, a global provider of food and beverage ingredients, said in its update: "While trading in March showed limited impact from the Covid-19 pandemic, the lockdowns in place in many countries across the world throughout April, most notably in our largest markets of the US and Europe, have led to some significant changes in demand patterns for our products. "
"Primary Products volume was significantly impacted by the first full month of lockdown in the US. The financial impact of lower demand was partially mitigated by prompt actions taken in March to optimise cash and reduce costs."
From a technical perspective, the short term rebound is running out of steam near the 61.8% Fibonacci retracement level of the previous down move. In addition, the 50-day simple moving average is still descending, indicating that prices rose too quickly. The Relative Strength Index (RSI, 14) is pushing below its horizontal support. As long as 717p is resistance, a consolidation move towards lower Bollinger band at 641p is likely.
Alternatively, a push above 717p would call for a new up move towards horizontal resistance ta 775p
Source: GAIN Capital, TradingView
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