THE TIPSTER TESCO COMES UNDER SELLING PRESSURE
THERE’S no doubting supermarket Tesco’s market dominance nor its ability to make billions of pounds worth of profit. But its share prices has come in for a little profit taking ahead of its third quarter sales, which are due tomorrow. From a technical point of a view, the chart suggests that a head and shoulders patterns could be forming in the stock, which may well signal a lower share price to come. Capital Spreads is quoting a price of 425.8p-426.4p.
Rival supermarket chain Wm Morrison has been struggling lately following the surprise departure of its chief executive Marc Bolland. Although its third quarter trading update was in line with expectations, like-for-like sales growth slowed significantly. But have these disappointments now been factored in to the price of the stock? With its price holding up well and within striking distance of year highs, there is a good chance that the shares will retest 295p in the run up to Christmas. IG Index is quoting a March-based spread of 279.57p-281.92p.
Shares in retailer Sports Direct have been mostly confined to the 95p-110p range over the past two months, but that could be about to change with the firm’s trading update on Wednesday. After it raised profit expectations in September, some spread betters have been taking an optimistic view on the stock. ShortsandLongs.com has a rolling spread of 102.9-104p.
Anybody who had bought miner Vedanta Resources with a long-term view earlier this year would have made incredible returns – the group has risen from lows of below 500p in March to above 2,500p last week. But some spread betters believe now is the time to short the stock as copper prices retreat from September highs. Spreadex has a March-based contract with a spread of 2,421.7p-2,438.8p.
Regular readers of the Tipster may remember last Wednesday’s tip to buy US dollar-yen. The pair has since risen as much as 226 points so anybody who had entered the market last week could be sitting on a tidy profit. But if you missed the boat, there’s time to jump on board this week as the rebound is likely to continue. Last week, Tokyo’s central bank injected yet further liquidity into the economy, which should help reduce the impact of the strong yen on exporters such as Sony and Toyota. ShortsandLongs have a spot price for of ¥89.88-¥89.94.