Koninklike in a range.Koninklike Ahold Delhaize - 30d expiry - We look to Buy at 27.14 (stop at 26.59)
Price action continued to range between key support & resistance (27.00 - 28.40) and we expect this to continue.
27.05 has been pivotal.
26.84 has been pivotal.
Daily signals are mildly bullish.
The primary trend remains bullish.
Intraday dips continue to attract buyers and there is no clear indication that this sequence for trading is coming to an end.
Our profit targets will be 28.49 and 28.99
Resistance: 28.50 / 28.80 / 29.50
Support: 27.10 / 26.80 / 26.50
Disclaimer – Saxo Bank Group.
Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
ADRNY trade ideas
Playing with Koninklike range.Koninklike Ahold Delhaize - Short term - We look to Sell at 28.27 (stop at 28.79)
Price action continued to range between key support & resistance (27.00 - 28.40) and we expect this to continue.
Preferred trade is to sell into rallies.
Spikes (rejections) can be seen in both directions highlighting indecision.
28.39 has been pivotal.
Trading has been mixed and volatile.
Our profit targets will be 27.12 and 26.72
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses
Resistance: 27.60 / 28.00 / 28.40
Support: 27.00 / 26.50 / 26.00
Income Statement Analysis: Gross MarginThe Gross margin is one of the first margins we can find on the Income Statement. The Gross margin is shown in percentage and it will give us a good indication of the performance of the core activity of a company. The formula to calculate the Gross margin goes as follows:
Gross margin (%) = Gross profit / Total revenue
Before we take a look at the interpretation of the Gross margin we first have to understand the concept of Gross profit. We can find the Gross profit after deducting the cost of goods sold from total revenue.
Gross profit = Total revenue - Cost of goods sold
with Revenue = Price x Quantity
In analyzing revenue we have to analyse both components:
Price: pricing power
Quantity: market share, macro economic environment
The Cost of goods sold (COGS) are the direct costs we have to make to generate revenue. In a retail environment like for EURONEXT:AD the purchase of the products are an important component of the cost of goods sold. In most cases the cost of goods sold are variable costs. Which means that those costs will fluctuate with a change in output.
Now that we have a better understanding of the Gross profit, we will continue with the interpretation of the Gross margin. To calculate a margin in the Income Statement we often divide a profit result by Total revenue. I will repeat the formula for the Gross margin (%): Gross margin = Gross profit / Total revenue
The Gross margin can increase in the following ways:
An increase in Gross profit: this can be the result of an increase in revenue or cost optimization (decrease in cost of goods sold)
Decrease in Total revenue: pay attention because a decrease in Total revenue also means a decrease in Gross profit
Gross profit increase > Total revenue increase
Total revenue decrease > Gross profit decrease
It is very important to take a deeper look into the source of the increase in the Gross margin. The growth rate of the revenue versus the growth rate of the cost of goods sold plays an important role here. If revenue grows faster than the cost of goods sold the portion of the COGS in % to total revenue will lower. As a result the Gross profit as percentage of Total revenue will increase (increase in Gross margin).
Example: Inflation has less consequences on the Gross margin of a company with pricing power, because the company can increase its price which will result in higher revenue to compensate for the increase in cost of goods sold.
AD Heading Lower? Koninklike Ahold Delhaize - Short Term - We look to Sell at 28.08 (stop at 28.95)
We look to sell rallies. Previous support at 28.00 now becomes resistance. 20 1day EMA is at 28.55. Expect trading to remain mixed and volatile. The medium term bias remains bearish.
Our profit targets will be 25.68 and 24.66
Resistance: 28.00 / 29.00 / 31.00
Support: 25.50 / 23.00 / 20.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
AD.AS long term solid uptrendJust got bounce back after reaching upper trend line, need some correction in the short term or more likely sideways consolidation: new buyback program of 1 billion EUR in 2022 should provide shock demper.
Strong support around 22-24 region (mid channel + volume profile POC), as long as this level holds, any correction provides decent opportunity for long term entries.
Possible upside trigger if e-commerce platform Bol.com gets spin off.
Next earning report 16-Feb-2022
Ahold Delhaize: Strong Online Sales + Share Buybacks Dutch grocery retailer Ahold Delhaize (AD €24.56) - strong online sales; 2021 outlook raised. Share buyback program: ~€464m of the €1bn program complete thus far (08/06).
Technical: Emerging from a rounding bottom consolidation. Also back-tested the downward trend line breakout.
Indication of price movement Q1 2021, AholdWe can see a symmetrical triangle forming on the charts of AHOLD. This can lead to a breakout or breakdown. In my personal opinion i think we will see a breakout, taking into account COVID-19 and AHOLD's strong position in online retail with 'bol.com'(Notoriously used by dropshippers), revenue growth is very likely. Also the strengthening of their position on the US market within the niche of fresh groceries deliveries is a smart move IMO. Giving the hype and attention to a increasingly healthy and sustainable lifestyle, the acquisition of FreshDirect based in the state of New York gives AHOLD a nice incline within that market segment.
Fundamentals are strong and BETA is low. As of writing date dividend levels stand around 4%.
Overall: Nice defensive stock with increasingly growth potential.