UTG AT VERY CRUCIAL SUPPORT ZONE
- UTG DOWN BY 19% IN 1 YEAR AND MORE THAN 3 % IN A MONTH.
- UTG PRICE IS TRADING NEAR TO ITS CRUCIAL SUPPORT LEVELS i.e. $25.5.
- REVENUE UP BY TWO CONSECUTIVE YEARS AND UP BY THIS YEAR @39.6 %.
MARKET CAPITAL OF UTG – GBP 1. 90 B
CURRENT MARKET PRICE OF UTG – GBP 26 .09
UTG revenue up 2 consecutive years but it is expected to be down this year from GBP 201 M to nearly GBP 190 M which is creating pressure on the stock along with it the net income has fallen badly from GBP 249 M to GBP (- 222 M), a fall of 188% but the positive thing is that the tally is expecting to increase this year as the market is expecting that the net income will come near to GBP (-120) M.
Net debt of the company being stable year on year for so long is neither a bad nor a good sign as it is good that the net debt is not rising but on the other hand the company is not able to reduce the debts.
Earning per share fell from 4.5 to – 3.20 a fall of 168%, although it is expected that the stock will improve its tally to -1.80 which is a good sign for the investors.
The company is consolidating in a range from GBP 31.3 – GBP 32 to GBP 23.3- GBP 22.8 because of the reasons we have discussed above, although it is taking some support near the level of GBP 25.50.
The overall trend is downward to negative as the price is trading below the supertrend which is a bearish sign and the supertrend resistance is falling at the levels GBP 26.85 but is close to its support.
If we discuss the levels on a 1-hour chart, then on the 1-hour chart the price broke the trendline near GBP 26.65 and then headed towards the support level of GBP 25.42 – GBP 26.03, but on a broader term the price is in a sideways trend in 1-hour time frame also where the support level is discussed above and the resistance is GBP 28.28 – GBP 28.91.
Price breakdown from the level and retested which made a perfect textbook kind of trade for the sellers, and the price is also supporting the sellers as the price is forming lower high and lower low patterns which is a sign of a bearish trend.
CONCLUSION
Since the price is trading in a sideways trend and the market is expecting an overall improvement in financials, it can help the buyers gain some confidence near the support area.
But if the price breaks the resistance in 1 hour time frame then it can go towards the level of GBP 31.2, or if it breaks the level on the downside then the price can fall further down towards the level of GBP 24- 23.
TECHNICAL LEVELS
- RESISTANCE- GBP – 28.91 AND GBP 31.2
- SUPPORT – GBP – 25.42 AND GBP 23
