This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
17 September, 2015
Mike van Dulken, Head of Research at Accendo Markets, commented this morning:
Weir Group (WEIR) is one of the biggest UK 100 losers this morning, continuing to suffer from its pending demotion to the (Mon 21 Sept) with the recent rally from 5 year lows being scuppered by a trendline of falling highs and thus resistance dating back to early June. The recent bounce may have been driven by hopes of an upbeat announcement (UK fracking?) ahead of the Q3 Interim statement on 3 November, potential for the company to benefit from Oil & Gas sector consolidation and a potential slowing in US oil production fuelling a firmer oil price and thus more investment and need for its services. However, the shares have again suffered at the hands of technicals with the 20-day moving average sending them back from 1330p towards recent 1220p lows, possibly dented by analyst downgrades to Oil & Gas sector price targets and uncertainty related to the Fed rate hike, an already strong dollar and global growth questions hampering the black stuff from making any helpful major recovery in the near term.
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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