Plus 500 - The gift that keeps on giving

Tuesday, 20th November 2018 09:22 - by Rajan Dhall

This morning we received the latest trading update from broker Plus 500. Brokers in the EU have taken a massive hit after regulation changes with both ESMA and MifiD II coming in. In a very short statement Asaf Elimelech, Chief Executive Officer of Plus500, stated 

"We are delighted to report positive momentum for October and November as we move towards the end of the financial year. We believe we are in a good position for 2019 and continue to focus on acquiring high value customers as well as growing in existing and new jurisdictions."

Most notably in the report, the Co. say the Board believes that the Group's results for the financial year ended 31 December 2018 will be ahead of previous market expectations. 

Looking at the chart it seems we are in a consolidation mode right now. The area that could confirm a move back to the upside would be a break of 1399p as it was the consolidation high seen in October. Interestingly, looking at the on balance volume indicator it seems even as the price was moving lower buying interest never slowed. Looking above we may see some resistance at the upward sloping trendline and 1550p. Remember overall global risk sentiment could cap gain in this stock or any for that matter so keep an eye on general sentiment. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.