Pearson says trading in line with market expectations

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By :  ,  Financial Analyst

Pearson says trading in line with market expectations

Pearson, the publishing and education company, issued a 9-month trading update: "At the nine months, Group sales declined by 14% largely reflecting the continuing impact of COVID-19 and test centre and school closures in Global Assessment and International, and expected declines in North American Courseware. After nine months Pearson is on track to deliver an outturn broadly in line with market expectations. However, because of the pandemic, larger than usual uncertainties surround the fourth quarter, particularly in International."

From a chartist’s point of view, the stock price is escaping from a broadening wedge pattern while the 20/50DMAs are validating a bullish cross. The daily Relative Strength Index (RSI, 14) is within its buying area (>50% and <70%). Bollinger bands are widening. As a consequence, as long as 533p is support, a continuation of the rebound is likely with 634p and 679p as bullish targets. Alternatively, a push below 533p would call for a new down move with 478.8p as first alternative target.

Source: GAIN Capital, TradingView

Related tags: Equities Coronavirus

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