A coronavirus panic-buy trade 

by Alistair Strang from Trends and Targets |

Brits are panic buying all sorts of things now, but this one has been hitting the headlines.

Kimberly-Clark (NYSE:KMB), owners of Andrex (the UK’s favourite toilet paper), must be laughing all the way to the loo, given UK public’ behaviour in response to coronavirus. 

Unsurprisingly, it looks like it shall need more than this country’s irrational behaviour to save NYSE:KMB from being flushed. But first, some bumf.

As for Kimberly-Clark share price, it looks like weakness now below 131 should drive reversal to an initial 125 dollars. If (when) broken, we suspect it shall bottom at 105 dollars and hopefully rebound.

Source: Trends and Targets      Past performance is not a guide to future performance

France, the CAC40, is looks a bit fraught. We last covered it in August 2019, giving criteria for reversal to 4,728 points. It finally triggered reversal at the end of February and since has been pretty much as expected, if rather fast. The index has now closed three sessions solidly below target, so we must dwell of downward potentials for the future.

The immediate situation is fairly blunt, the index requiring above 4,990 points just to regain the prior uptrend. With the strength of downward commitment, we have our doubts. 

Instead, it appears weakness now below 4,600 should bring reversal to an initial 4,533. We’d hope for a real rebound at such a level as the implication below is quite dreadful. The secondary calculation comes in at 4,358 points, taking the market to a “lower low” (yes, we’re getting fed up writing this) and placing the French index at risk of continuing downhill in the longer term to a bottom of 3,094 points.

Of course, given the pace of recent reversals, “the longer term” could easily mean sometime next week!

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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