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BP's Q3 Profits Dip as Energy Trading FaltersBP (BP.) Financial Snapshot: BP reported a significant drop in third-quarter profits, with underlying earnings totalling $3.3 billion, down from $8.2 billion in the same period a year earlier. These results fell short of market expectations, which had anticipated earnings of $4 billion. Today’s results were BP’s first since the resignation of CEO Bernard Looney in September. Looney's resignation was prompted by his failure to disclose past relationships with colleagues. Interim CEO Murray Auchincloss highlighted the company's strong operational performance, noting that oil and gas production was 3% higher than the previous year, and production costs were 6% lower. However, these positive operational aspects could not fully offset the impact of lower prices for BP's hydrocarbons and lower-than-expected results from its gas trading operations. Despite the sharp decline in earnings, BP continued with its share buyback program, announcing plans to repurchase an additional $1.5 billion of shares. Market Reaction: The market's initial response to BP's results has been negative, with the stock dropping more than 22p. To put this price movement in perspective, BP's Average True Range (ATR) is 13p, which means today's gap down is more than 1.5 times the magnitude of a typical trading day for BP. This morning's negative gap has taken prices back to the 200-day moving average (MA), a closely watched metric for long-term investors. The move lower has also brought prices closer to short-term swing support created by the early-October swing lows. If BP manages to rally during today's session and close this morning's gap, it would be viewed as a very bullish sign. However, if the shares fail to close the gap, it would signal that short-term momentum remains bearish. BP. Daily Candle Chart Past performance is not a reliable indicator of future results Risk Management: The release of financial results tends to amplify a stock's volatility. For those considering trading BP, the ATR serves as a valuable tool to help traders account for a stock's volatility when setting stop losses and limit orders. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:BP.
by Capitalcom
Barclays Gap Lower on Q3 NumbersBarclays (BARC) Financial Snapshot: Barclays announced a 16% decrease in profit for the third quarter. This decline was primarily attributed to sluggish revenue growth in its UK retail division and lackluster performance in its investment bank, impacted by a shortage of M&A deals and reduced trading activity. However, Barclays managed to exceed expectations by achieving a net profit of £1.3 billion. The bank also sustained a 5% increase in overall group revenue, reaching £6.3 billion, aligning with market projections. Notably, Barclays allocated fewer funds for bad loans than the market had predicted. The UK retail division experienced a 3% dip in attributable profit, mainly due to customers shifting deposits away from higher-interest-rate products. Barclays anticipates a decrease in its net interest margin for 2023, now expected to fall within the range of 3.05% to 3.10%, down from the previous guidance of 3.2% to 3.15%. This metric is one to watch, especially with domestic peers like NatWest and Lloyds Banking Group preparing to report their quarterly results soon. In the investment bank, income decreased by 6% to £3.1 billion when adjusted for a bond overissuance error from last year. Fixed-income trading saw a notable 26% decline, while equity trading revenue more than doubled. Advisory and capital markets fees dropped by 30% due to fewer takeover deals and reduced debt issuance. Market Reaction: The market has so far responded negatively to Barclays' Q3 results, causing a share price to gap lower at the opening of today's trading session. Interestingly, this price gap breached two levels of horizontal support that were established by the summer swing lows. This negative gap is likely to create a layer of resistance on Barclays' price chart in the future. Prices now appear poised to retest the lows seen during the Silicon Valley banking crisis spike that occurred in March (see chart below). BARC Daily Candle Chart Past performance is not a reliable indicator of future results. Risk Management: The release of financial results tends to amplify a stock's volatility. For those considering trading Barclays, the Average True Range (ATR) serves as a valuable tool to help traders account for a stock's volatility when setting stop losses and limit orders. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:BARC
by Capitalcom
Aston Martin reverse to retest key support cluster Aston Martin Lagonda Global Holdings (LSE:AML) Aston Martin’s share price had raced higher during the summer after Chinese carmaker, Geely doubled its stake in the historic British brand. Geely, a long-standing admirer of Aston Martin, had previously made multiple attempts to acquire the company. In May, Geely acquired 42 million shares from Aston Martin's ownership consortium, solidifying their investment while providing components and technology to the automaker. However, recent market dynamics have caused Aston Martin's share price to reverse course, experiencing a substantial pullback from its summer peak of nearly £4. This extended retracement has brought the stock into close proximity to a cluster of support levels. Firstly, there's the gap that emerged in May after Geely's investment, which has now been closed. During the recent gap-closure phase, several long-tailed bullish hammer candles have appeared, indicating potential reversal signals. Secondly, the Volume Weighted Average Price (VWAP) anchored to the key October lows assumes significance, as it reflects the average price of buyers who entered just before the Geely rumours surfaced. Lastly, we find swing support, which represents the psychologically important £2 level. This confluence of support levels is likely to attract the attention of long-term investors, and it remains to be seen whether it will be sufficient to reverse the recent pullback. AML Daily Candle Chart Risk management It's essential to remember that support and resistance levels serve as guides and are not foolproof guarantees. While technical analysis is valuable, it should complement fundamental analysis. It's noteworthy that Aston Martin is currently a loss-making company, making it susceptible to short sellers. Additionally, please take into account that Aston Martin is scheduled to release its Q3 2023 Earnings on Wednesday, November 1st. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:AML
by Capitalcom
AML: A Speculative Buy06 October 2023 The Professional Trader The article and the data is for general information use only, not advice! 3 min read Aston Martin: A Speculative Buy Aston Martin is a luxury car manufacturer with a long and storied history. The company is known for its high-performance, handcrafted vehicles. However, Aston Martin has also had a history of financial struggles. Here are some of the reasons why I would rate Aston Martin shares as Speculative Buy: Strong brand: Aston Martin is a well-known and respected brand in the luxury car industry. The company's cars are associated with luxury, performance, and style. Growth opportunities: Aston Martin is well-positioned for growth in the luxury car market. The company is expanding its product range and entering new markets. For example, Aston Martin is planning to launch a new SUV in the coming years. Valuation: Aston Martin shares are currently trading at a relatively low valuation. The company's price-to-earnings ratio is around 6, which is below the average for the luxury car sector. However, there are some risks to consider before investing in Aston Martin shares. These include: Financial performance: Aston Martin has a history of financial losses. The company has been struggling to generate positive cash flow and earnings. Debt: Aston Martin has a significant amount of debt. This could make the company vulnerable to a downturn in the luxury car market. Competition: Aston Martin faces competition from other well-known luxury car brands, such as Ferrari and Porsche. Overall, I believe that Aston Martin shares are a good investment for investors who are willing to take on risk. The company has a strong brand, growth opportunities, and a relatively low valuation. However, investors should be aware of the financial risks associated with investing in Aston Martin shares. Risk Disclaimer! Stock Rating I would rate Aston Martin shares as a Speculative Buy for the mid- to long-term. The company has strong brand and growth opportunities for the near and long term future. Trading with options as an alternative support to investment in Aston Martin sharesTrading with options can be a good alternative support to investment in Aston Martin shares. Options give investors the right, but not the obligation, to buy or sell shares at a certain price on or before a certain date. This can be used to hedge against risk or to speculate on the future price of Aston Martin shares.For example, an investor who believes that Aston Martin shares are undervalued could buy call options. This would give the investor the right to buy shares at a certain price, even if the share price rises above that level. This can be a good way to limit losses if the share price falls.Conversely, an investor who believes that Aston Martin shares are overvalued could buy put options. This would give the investor the right to sell shares at a certain price, even if the share price falls below that level. This can be a good way to profit if the share price falls.It is important to note that options are a risky investment and should only be used by experienced investors. Options can expire worthless, and investors can lose more money than they invest.If you are considering trading with options, it is important to do your research and understand the risks involved. You should also consult with a financial advisor to get personalized advice. My opinion on trading with options as an alternative support to investment in Aston Martin sharesI believe that trading with options can be a good way to support an investment in Aston Martin shares. Options can be used to hedge against risk or to speculate on the future price of the shares.For example, an investor who is bullish on Aston Martin in the long term could buy shares and also buy call options. This would give the investor the opportunity to profit if the share price rises, but it would also limit their losses if the share price falls.Conversely, an investor who is bearish on Aston Martin in the short term could buy put options. This would give the investor the opportunity to profit if the share price falls, but they would lose their investment if the share price rises.It is important to note that options trading is complex and risky. Investors should carefully consider their investment goals and risk tolerance before trading with options. Risk Warning Trading stocks and options is a risky activity and can result in losses. You should only trade if you understand the risks involved and are comfortable with the potential for losses. Risk Disclaimer! General Risk Warning: Trading on the Financial Markets, Stock Exchange and all its asset derivatives is highly speculative and may not be suitable for all investors. Only invest with money you can afford to lose and ensure that you fully understand the risks involved. It is important that you understand how Trading and Investing on the stock exchange works and that you consider whether you can afford the high risk of loss Rating: Speculative Buy Risk Disclaimer! The article and the data is for general information use only, not advice!
LSE:AMLLong
by TheTrade_Academ
NVDA, CRUCIAL Pullback Triggers, Major BEARISH Indications!Hello There! Welcome to my new analysis about NVDA on several timeframe perspectives. Within the recent times the market of NVDA has shifted into a potentially crucially developing bearish pullback scenario consideration. Especially, as there are underlying bearish factors that could trigger such a bearish signal that NVDA does not have the ability to emerge with new highs in the near future. Within the recent times "official" sources have reported about the new Covid-19 variant "Iris" which is already causing the rise of the hospital activity to over 40%. Within the Covid-19 pandemic global financial market disruptions such stocks showed a major downside. Only a half of this dynamic seen in 2020 this time could trigger such a bearish rection in NVDA that is causing further net-long-position liquidation-squeezes towards the downside to emerge with a minimum -30% dump. A major shortage within the semiconductor manufacturing could accelerate a bearish dynamic here as NVDA could emerge with a massive bearish indication especially once supply chain disruptions emerge similar as it has been alreay seen within the actual declines in May 2020 because of this dynamic. Depending on the severeness and intensity of the supply shortages this could trigger such a bearish momentum that even once the final ascending-wedge targets are reached NVDA moves further after this. Once a continuation of bearish pullbacks emerges here and NVDA formed the breakout below the lower boundary of the gigantic ascending triangle this is going to activate the target-zones marked in my chart at 280-300. Once the targets are reached it has to be elevated how the bearishness continued till there on and if a reversal will even be possible. When NVDA continues with the major bearish inclinations this does not mean NVDA is going to be bearish forever and that it is not going to mark a new all-time-high ever again. Because, especially when the bearish momentum could reach such a level from where a reversal is possible in combination with a confirmation in the market there is still the possibility for stabilization and a retest of previous areas. This is why I am keeping the symbol on the watchlist and re-evaluate the situation once important changes setup. In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated. VP
LSIN:0R1I
by VincePrince
13
LIO A Value Investment At A Potential Significant Turning point.LIO is now at an area which should provide a spring board for the next move higher. Looking at some key ratios reveals price is already offering great value here: PE Ratio 7.7 EV to EBITDA 3.8 Dividend Yield 12.00% We have the confluence of chart support and trend line support coming into play. The meeting of these on a technical level usually provides relief from selling pressure and an opportunity for new entries to be undertaken. Only decisive move below the risk zone would potentially invalidate the idea. Long term buy and hold
LSE:LIOLong
by trendchanges
2 Retail Stocks to WatchMarks & Spencer (MKS) Financials: Marks & Spencer reported strong growth in both its Food and Clothing & Home businesses for the first 19 weeks of the financial year. Food sales increased by over 11%, driven by price changes, while Clothing & Home sales grew by more than 6%, primarily due to in-store growth. Despite economic uncertainties, the company expects significant improvements in full-year profit growth and half-year results compared to previous expectations of modest revenue growth. Technical View: Marks & Spencer’s share price has been locked in a powerful uptrend since the turn of the year. Recent price action has seen the shares break out from a wedge pattern and retest trend highs. We are now seeing prices consolidate at trend highs within a series of small candles. This form of high and tight consolidation signals a reluctance to pull back, which suggests that the shares are being accumulated ahead of a potential move higher. MKS Daily Candle Chart Next (NXT) Financials: Next's half-year sales grew 5.4% to £2.6 billion, benefiting from higher wages and warm weather in late spring and early summer. Pre-tax profit rose 4.8% to £419.8 million, driven by increased sales and higher full-price sales of their own-brand products. They improved free cash flow to £438.1 million and reduced net debt to £1.7 billion. Full-year profit guidance was raised to £875 million. Next completed £167 million in share buybacks, plans to spend £52 million more, and announced an interim dividend of 66p per share. Technical View Next’s uptrend is decidedly less pretty than Marks & Spencer’s, but we have seen prices carve out a rising series of higher swing lows. This has created a steepening trendline fan which suggests underlying price momentum is increasing. Recent price action has seen the shares pull back to a key area of trend support created by the broken summer swing highs. Should Next’s uptrend continue, we would expect these broken summer swing highs to provide support moving forward. NXT Daily Candle Chart Risk management It’s worth noting that despite the robust high street presence of both Marks & Spencer and Next, rising inflation may impact consumer spending. Cost-saving measures from both businesses may not fully offset increased costs, potentially leading to higher prices. Marks & Spencer are set to release half year earnings on 8th November 2023. Next are set to release Q3 earnings on 1st November 2023. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:MKS
by Capitalcom