THE TIPSTER
A MONTH ago we pointed out that the outlook for Ladbrokes was bearish with the shares looking more likely to go down than up. Since then, Ladbrokes has fallen 7 per cent, despite what should be a profitable World Cup and the outlook has got even worse. It closed at a 6-month low at 131p, but more significantly it fell below support levels around 132p and technical signals remain bearish. This opens the door for another slide down to 120p in the medium term. 137p will be resistance to the upside. Spread Co offers a spread on Ladbrokes of 129.4p-130.1p
Although the banking sector breathed a sigh of relief after George Osborne’s fairly lenient budget last week, there could still be a bumpy ride ahead as changes to taxation remain in the wings. But Lloyds Banking Group, which recently slashed some of its workforce, looks well-placed to outperform in the sector. It is currently trading above its 52-week low of 45p. Could it be over the worst? Cantor Index offers a spread of 53.61p-53.80p.
Vodafone’s share price has suffered recently following Credit Suisse’s broker downgrade on Tuesday. This could spur further weakness in its share price, especially during the current period of market turmoil. Capital Spreads quotes a price of 139.3p-1.39.6p.
It looks like the market was pre-empting good news from HMV Group, after the share price staged a strong rally. It rose from 51p to 61.7p yesterday, following Tuesday’s announcement of record sales in excess of £2bn in the first four months of the year. The 50-day simple moving average points to a resistance level at 63p, but if momentum continues then this level could be overcome, and 70p should be the next target. Spread Co offers a spread on HMV Group of 61.7p-62.5p.
Analysts will be watching closely for Debenhams’ trading report today, which could be gloomy due to the coming VAT rise in January. Cantor Index offers a spread of 52.87p-53.08p.