The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Supergroup’s 14% slump yesterday has carried it into oversold levels, after the company said that sales had been hit hard by a late Easter and a reduction in sales through the online auction site eBay. We saw the shares slump 20% in April, as this high growth and high momentum stock fell out of favour with investors. Last year was a good one for the company, so it is admittedly struggling against difficult comparisons, but the slowdown in volumes is worrying news.
Gold miner Petropavlovsk is also oversold, and rapidly heading towards a retest of the 65p low that was seen in January. A drop through here means we could see the shares fall to 55p, the all-time low in what was a very impressive downtrend.