The European banking sector soared on Monday following the weekend announcement of a bailout for Spanish banks. Barclays has also benefited, with investors piling back in on the buy-side. The stock gapped higher yesterday and briefly topped 200p, although this move only takes the share price back to levels seen in mid-May. However, 197p marks the 50 per cent retracement of the September-March rally, so the price action around here is crucial for short-term traders. GFT quotes 196p-196.15p for Barclays.
Sainsbury is due to release its first quarter trading statement this Wednesday with investors anticipating record figures. The UK’s second largest food retailer has reportedly capitalised on Jubilee celebrations leading to an increase in like-for-like sales. An effective marketing campaign coupled with a slowdown at its largest rival Tesco has catapulted the company into an attractive investment. Should the stock surpass resistance of 320p, we may see a rally to 2011 levels. Spread Co quotes 289.46p-289.74p for Sainsbury.
Carphone Warehouse suffered a significant fall in its share price in the first part of the year, as it acknowledged that the slump in pre-pay mobile phone markets was impacting profits. Having sold its stake in Best Buy Mobile earlier this year, pre-tax profits will reflect this, while underlying profits are expected to come in around £135m. CMC Makes quotes 133.67p-134.32p for Carphone Warehouse.