KER Holding On
Shares in Kernel, the Ukrainian firm which is the largest global exporter of sunflower oil, are attempting to bounce back this week. As news of the Russian invasion broke last week, the company’s stock price went into free fall, collapsing more than 20% from the high $47s to lows around $25. With massive uncertainty in the company’s outlook, as a result of the conflict, sellers were quick to pounce on Kernel. However, price action has since stabilised and shares are finding strong demand at recent lows. A solid Q4 earnings report has also helped, with the company reporting revenues of $6.698 billion, beating estimates of $6.491 billion.
Despite the better earnings release, the near-future looks highly uncertain and the company remains vulnerable to further downside. A second round of peace talks are under way today and, if a ceasefire can be agreed, this would no doubt be welcomed by markets, lifting Kernel’s stock. However, if the fighting continues and talks prove fruitless, we might see lower prices very quickly.
Technical Views
KER
The collapse below the long term bull trend line has seen the market extending as low as a test of major support at the 21.02 level. With both MACD and RSI firmly bearish, the focus is on further downside. However, while this support level holds, the correction might gain strength. Bulls will need to see a quick break of 31.70, however, to regain upside momentum.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.